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Similarity in trade structures, integration and catching‐up1

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  • Luca De Benedictis
  • Lucia Tajoli

Abstract

In this paper, we look at the role of export composition in the growth process, considering how increased similarity in trade structure among countries can induce catching‐up in income levels in a group of countries in transition. We analyze the sectoral export patterns of the Central and Eastern European countries (CEECs) by comparing them to those of the current members of the European Union (EU), focusing on countries’ specialization as suppliers for the EU market, and we assess whether similar export patterns foster the catching‐up process of the CEECs. Our main result is that similarity in export composition has a positive, significant and non‐linear impact on catching‐up, and seems to be driven by the growth of the main export market and delocalization of production more than by other factors.

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  • Luca De Benedictis & Lucia Tajoli, 2008. "Similarity in trade structures, integration and catching‐up1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(2), pages 165-182, April.
    • Handle: RePEc:bla:etrans:v:16:y:2008:i:2:p:165-182
    DOI: 10.1111/j.1468-0351.2008.00313.x
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    References listed on IDEAS

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    1. Dan Ben-David & Ayal Kimhi, 2001. "Trade and the rate of income convergence," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 13(4), pages 419-441.
    2. Romain Wacziarg & Karen Horn Welch, 2008. "Trade Liberalization and Growth: New Evidence," The World Bank Economic Review, World Bank, vol. 22(2), pages 187-231, June.
    3. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
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    Cited by:

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    2. Alessia Lo Turco & Aleksandra Parteka, 2011. "The demand for skills and labour costs in partner countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(3), pages 611-637, July.
    3. Goran Nikolić, 2011. "Convergence of the Export Structure of Romania, Croatia, Serbia and Bosnia-Herzegovina to the Structure of Import Demand in Developed Countries," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(3), pages 393-406, September.
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    5. Gnangnon, Sèna Kimm, 2020. "Internet and tax reform in developing countries," Information Economics and Policy, Elsevier, vol. 51(C).
    6. Lucia Tajoli, 2022. "Too much of a good thing? Russia-EU international trade relations at times of war," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 807-834, December.
    7. Alessia Lo Turco & Aleksandra Parteka, 2009. "Empirical investigation on labour market interactions in an enlarged Europe," Bank i Kredyt, Narodowy Bank Polski, vol. 40(1), pages 87-105.
    8. Alessandro ANTIMIANI & Anna CARBONE & Valeria COSTANTINI & Roberto HENKE, 2012. "Agri-food exports in the enlarged European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(8), pages 354-366.
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    10. Goran Nikolić & Ivan Nikolić, 2021. "Is There A Trade Convergence Between South East European And Central European Economies?," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(231), pages 7-32, October –.
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    12. Sena Kimm Gnangnon, 2020. "Effect of Development Aid on Tax Reform in Recipient-Countries: Does Trade Openness Matter?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 1-23, January.
    13. Alessia Lo Turco & Aleksandra Parteka, 2009. "The EU enlargement and domestic employment," Economics Bulletin, AccessEcon, vol. 29(3), pages 2202-2217.
    14. Bernardina Algieri & Antonio Aquino & Marianna Succurro, 2022. "Trade Specialisation and Changing Patterns of Comparative Advantages in Manufactured Goods," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(3), pages 607-667, November.
    15. Sèna Kimm Gnangnon, 2023. "Trade costs and tax transition reform in developing countries," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(4), pages 941-977, October.
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