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Transition, variété des produits et intégration économique

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  • Tito Boeri
  • Joaquim Oliveira-Martins

Abstract

[eng] Convergence of transition countries will have an impact on their external competitiveness. However, small open economies can grow faster than their partners without being constrained by the balance of payments if they succeed in increasing the supply of differentiated goods produced domestically (variety effect). This will require extensive economic restructuring as production is still largely focused on homogeneous goods with little differentiation and business density is significantly lower than in Western Europe. This paper introduces a simple open-economy model that can account for these stylised facts of transition and provides numerical simulations to evaluate the potential impact of the economic restructuring process on employment, production and start-up costs for new businesses. [fre] Convergence of transition countries will have an impact on their external competitiveness. However, small open economies can grow faster than their partners without being constrained by the balance of payments if they succeed in increasing the supply of differentiated goods produced domestically (variety effect). This will require extensive economic restructuring as production is still largely focused on homogeneous goods with little differentiation and business density is significantly lower than in Western Europe. This paper introduces a simple open-economy model that can account for these stylised facts of transition and provides numerical simulations to evaluate the potential impact of the economic restructuring process on employment, production and start-up costs for new businesses.

Suggested Citation

  • Tito Boeri & Joaquim Oliveira-Martins, 2002. "Transition, variété des produits et intégration économique," Économie et Prévision, Programme National Persée, vol. 152(1), pages 55-69.
  • Handle: RePEc:prs:ecoprv:ecop_0249-4744_2002_num_152_1_6365
    Note: DOI:10.3406/ecop.2002.6365
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    References listed on IDEAS

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    1. Robert C. Feenstra & Tzu-Han Yang & Gary G. Hamilton, "undated". "Business Groups And Trade In East Asia: Part 2, Product Variety," Department of Economics 96-14, California Davis - Department of Economics.
    2. Gérard Roland & Thierry Verdier, 1999. "Transition and the output fall," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 1-28, March.
    3. Robert C. Feenstra & Deng-Shing Huang & Gary G. Hamilton, 1997. "Business Groups and Trade in East Asia: Part 1, Networked Equilibria," NBER Working Papers 5886, National Bureau of Economic Research, Inc.
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    6. Daniel Daianu, 1996. "Stabilization and exchange rate policy in Romania ," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 229-248, May.
    7. Krugman, Paul, 1989. "Differences in income elasticities and trends in real exchange rates," European Economic Review, Elsevier, vol. 33(5), pages 1031-1046, May.
    8. 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.
    9. Neven, Damien, 1995. "Trade liberalisation with Eastern nations: Some distribution issues," European Economic Review, Elsevier, vol. 39(3-4), pages 622-632, April.
    10. Djankov, Simeon & Hoekman, Bernard, 1996. "Intra-Industry Trade, Foreign Direct Investment and the Reorientation of East European Exports," CEPR Discussion Papers 1377, C.E.P.R. Discussion Papers.
    11. repec:adr:anecst:y:1997:i:47:p:07 is not listed on IDEAS
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