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Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-Based Learning

Listed author(s):
  • ULRIKE HOTOPP
  • SLAVO RADOSEVIC
  • KATE BISHOP

This paper explores mechanisms linking trade and restructuring in Central and Eastern European (CEE) countries through learning and industrial upgrading. These are reflected in changes in the composition of trade through changes in the relative shares of particular products and clusters in exports (scale), and in the number of products exported (scope). An analysis of export clusters shows the decreasing importance of commodities (homogeneous resource-based goods) and a shift toward technology and labor-intensive products to be a common trend. However, differences between the countries are strong with respect to changes in both scale and scope in technology and labor-intensive activities. These differences show that trade-based learning mechanisms have strong effects on differences in industrial upgrading between CEE economies.

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Article provided by M.E. Sharpe, Inc. in its journal Emerging Markets Finance and Trade.

Volume (Year): 41 (2005)
Issue (Month): 4 (August)
Pages: 20-37

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Handle: RePEc:mes:emfitr:v:41:y:2005:i:4:p:20-37
Contact details of provider: Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=111024

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  1. Redding, S., 1997. "Dynamic Comparative Advantage and the Welfare Effects of Trade," Economics Papers 140, Economics Group, Nuffield College, University of Oxford.
  2. Hoekman, Bernard & Djankov, Simeon, 1996. "Intra-industry trade, foreign direct investment, and the reorientation of Eastern European exports," Policy Research Working Paper Series 1652, The World Bank.
  3. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  4. Jakab, Zoltan M. & Kovacs, Mihaly A. & Oszlay, Andras, 2001. "How Far Has Trade Integration Advanced?: An Analysis of the Actual and Potential Trade of Three Central and Eastern European Countries," Journal of Comparative Economics, Elsevier, vol. 29(2), pages 276-292, June.
  5. Slavo Radosevic, 1999. "Patterns of innovative activities in countries of Central and Eastern Europe: An analysis based on comparison of innovation surveys," SPRU Working Paper Series 35, SPRU - Science and Technology Policy Research, University of Sussex.
  6. Jesús Crespo Cuaresma & Julia Wörz, 2005. "On Export Composition and Growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(1), pages 33-49, April.
  7. Kenneth J. Arrow, 1962. "The Economic Implications of Learning by Doing," Review of Economic Studies, Oxford University Press, vol. 29(3), pages 155-173.
  8. Schnitzer, Monika, 1998. "Bank Competition and Enterprise restructuring in Transition Economies," CEPR Discussion Papers 2045, C.E.P.R. Discussion Papers.
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