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Dimensions of Quality Upgrading in CEECs

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  • Uwe Dulleck
  • Neil Foster-McGregor

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

  • Robert Stehrer

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

  • Julia Wörz

Abstract

The impact of the Central and Eastern European economies' trade integration with European markets on CEE trade structures has been studied extensively. These studies frequently observe a quality upgrading of CEE exports. In this paper we consider three dimensions of quality upgrading upgrading across industries, upgrading across different quality segments within industries and, finally, product upgrading within quality segments inside industries. For the analysis we partition industries into quality segments based on EU-15 import unit values. The results for ten CEE countries (comprising the CEE-5, the Baltics and Southeastern Europe) and thirteen industries suggest fundamental differences, both across country groups and across the three different notions of quality upgrading. The CEE-5 show no evidence of entering a 'low-quality trap' in all three dimensions. By contrast, while there is a general catching-up process across industries and inside quality segments, the second notion of low-quality specialization may be applicable within the high-tech industries to the performance of the Baltics and Southeast Europe as a group.

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Bibliographic Info

Paper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 29.

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Date of creation: Apr 2004
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Publication status: Published as wiiw Working Paper
Handle: RePEc:wii:wpaper:29

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Keywords: trade composition; quality; CEECs; integration;

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References

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  1. Aiginger, Karl, 1997. "The Use of Unit Values to Discriminate between Price and Quality Competition," Cambridge Journal of Economics, Oxford University Press, vol. 21(5), pages 571-92, September.
  2. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1988. "Industrialization and the Big Push," NBER Working Papers 2708, National Bureau of Economic Research, Inc.
  3. Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 62-81, March.
  4. Michael A. Landesmann & Robert Stehrer, 2002. "Evolving Competitiveness of CEEC’s in an Enlarged Europe," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 23-88, January-F.
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Cited by:
  1. World Bank, 2005. "Lithuania : Investment Climate Assessment," World Bank Other Operational Studies 8568, The World Bank.
  2. Goran Nikolić, 2013. "Is There A Structural Improvement In The Merchandise Exports Of The Balkan Countries In The Period 2000-2012?," Economic Annals, Faculty of Economics, University of Belgrade, vol. 58(196), pages 99-132, January â.
  3. Jože P. Damijan & Matija Rojec & Maja Ferjančič, 2011. "The Growing Export Performance of Transition Economies: EU Market Access versus Supply Capacity Factors," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(4), pages 489-509, December.
  4. Joze P. Damijan & Matija Rojec & Maja Ferjancic, 2008. "Growing export performance of transition economies: EU market access versus supply capacity factors," LICOS Discussion Papers 20208, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Christian Ragacs & Beate Resch & Klaus Vondra, 2011. "Austria’s Manufacturing Competitiveness," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 35–61.

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