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Similarity in trade structures, integration and catching-up

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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. Copyright (c) 2008 The Authors.

Suggested Citation

  • Luca De Benedictis & Lucia Tajoli, 2008. "Similarity in trade structures, integration and catching-up," 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
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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," World Bank Economic Review, World Bank Group, 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:

    1. 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.
    2. Paolo Guerrieri & Filippo Vergara Caffarelli, 2012. "Trade Openness and International Fragmentation of Production in the European Union: The New Divide?," Review of International Economics, Wiley Blackwell, vol. 20(3), pages 535-551, August.
    3. Alessia Lo Turco & Aleksandra Parteka, 2009. "The EU enlargement and domestic employment," Economics Bulletin, AccessEcon, vol. 29(3), pages 2202-2217.
    4. 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.
    5. 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.
    6. Valeria Costantini & Francesco Crespi, 2015. "European enlargement policy, technological capabilities and sectoral export dynamics," The Journal of Technology Transfer, Springer, vol. 40(1), pages 25-69, February.

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