Internal Liberalization as a Barrier To Export-led Recovery in Central European Countries Preparing For EU Accession
In spite of an hitherto unprecedented record of external liberalization in Central European economies contributions of exports to real growth have recently been rather unspectacular, especially when compared to the experience of OECD countries lacking a comparable degree of external liberalization. To explain this apparent puzzle, this paper links two trends observable in transition economies, i.e., continuous resource reallocation and trend real exchange rate appreciation. This link is warranted by the following chain of arguments: (1) The higher the extent of transition-specific reallocation of employment in the economy following internal liberalization, the higher the real appreciation. (2) The higher the real appreciation, the lower the export sector real growth contribution. Combining (1) and (2) yields the result: An extensive transition-specific reallocation of resources from former excess supply sectors, such as industry and agriculture (i.e., mostly tradables production), to former excess demand sectors, specifically market services (i.e., mostly non-tradables production), acts as a barrier to export-led recovery from the transition recession.Recalling that standard trade liberalization programs in non-transition countries are associated with resource flows into the exactly opposite direction, i.e. from the production of non-tradable goods to tradables production, the argument presented appears quite intuitive. Comparative Economic Studies (2000) 42, 31–47; doi:10.1057/ces.2000.14
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 42 (2000)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:||Web: http://www.springer.com/economics/journal/41294/PS2|
When requesting a correction, please mention this item's handle: RePEc:pal:compes:v:42:y:2000:i:3:p:31-47. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.