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The CEECs in the Enlarged Europe: Convergence Patterns, Specialization and Labour Market Implications

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  • Michael Landesmann

    ()
    (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    ()
    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

This paper discusses the evolution of competitiveness, industrial and trade specialization of the countries of Central and Eastern Europe (CEECs). It is shown that the paths taken by the different CEECs have been quite diverse and we attempt to show that a combination of a catching-up plus trade specialization model is required to understand the patterns of specialization emerging in Central and Eastern Europe. We start with a description of the main features of macro-structural change and move on to discuss patterns of productivity and wage catching-up across industries which give rise to interesting movements in comparative cost dynamics. This is complemented with an analysis of patterns of trade specialization, including measures of product quality upgrading. We add information about the industrial allocation of FDI and comparative educational attainment as well as on the evolution of labour demand by skill groups. All the above yields an interesting (and at times unexpected) picture of the evolving division of labour in an enlarged Europe.

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Bibliographic Info

Paper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Research Reports with number 286.

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Length: 51 pages including 13 Tables and 14 Figures
Date of creation: Jul 2002
Date of revision:
Publication status: Published as wiiw Research Report
Handle: RePEc:wii:rpaper:rr:286

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Related research

Keywords: structural change; international specialization; catching-up; convergence; Central and Eastern Europe; EU enlargement; international integration and labour markets;

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Citations

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Cited by:
  1. Sustersic, Janez, 2009. "Endogenous gradualism and the Slovenian puzzle," China Economic Review, Elsevier, vol. 20(2), pages 265-274, June.
  2. Christian Bellak, 2004. "The Impact of Enlargement on the Race for FDI," Department of Economics Working Papers wuwp086, Vienna University of Economics, Department of Economics.
  3. Kirsten Lommatzsch & Silke Tober, 2004. "Productivity Growth and the Real Appreciation of the Accession Countries' Currencies," William Davidson Institute Working Papers Series 2004-675, William Davidson Institute at the University of Michigan.
  4. Anna Iara & Iulia Traistaru, 2004. "Integration, Regional Specialization and Growth Differentials in EU Acceding Countries: Evidence from Hungary," ERSA conference papers ersa04p298, European Regional Science Association.
  5. Lommatzsch, Kirsten & Tober, Silke, 2004. "What is behind the real appreciation of the accession countries' currencies?: An investigation of the PPI-based real exchange rate," Economic Systems, Elsevier, vol. 28(4), pages 383-403, December.
  6. Matija Rojec & Janez Sustersic & Bostjan Vasle & Marijana Bednas & Slavica Jurancic, 2004. "The rise and decline of gradualism in Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 16(4), pages 459-482.
  7. Dr Johannes Stephan, 2004. "Evolving Structural Patterns in the Enlarging European Division of Labour: Sectoral and Branch Specialisation and the Potentials for Closing the Productivity Gap," Development and Comp Systems 0403003, EconWPA.
  8. Peter Havlik, 2014. "Patterns of Structural Change in the New EU Member States," wiiw Research Reports 394, The Vienna Institute for International Economic Studies, wiiw.
  9. Ivan Angelov, 2004. "Accelerated Economic Development – Theory and Practice," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 3-33.

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