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The Technological Gap in the CMEA Countries: Missing Incentives

In: The Evolution of Economic Systems

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  • Friedrich Levcik

Abstract

The technological gap in the CMEA countries1 has evidently widened since the middle of the 1970s. There are many instances substantiating this statement which, besides, can be observed by every Western tourist visiting these countries. Looking at the commodity composition of East-West trade one will find that the share of manufactures, and especially of investment goods exported by the OECD countries to the European CMEA countries, is much higher than the respective import share. The CMEA countries have also persistently lost market shares in exports of manufactures to the West, partly because their export orientation was concentrated in fields where demand in international trade was weak but mainly because the goods offered could not compete in quality, technical standards or after-sale services. Some of the developing countries, especially the newly industrialised countries, were far more successful in penetrating Western markets and the CMEA countries had to accept severe price reductions in the face of competition from these countries.

Suggested Citation

  • Friedrich Levcik, 1990. "The Technological Gap in the CMEA Countries: Missing Incentives," Palgrave Macmillan Books, in: Kurt Dopfer & Karl-F. Raible (ed.), The Evolution of Economic Systems, chapter 20, pages 213-221, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-11153-4_20
    DOI: 10.1007/978-1-349-11153-4_20
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