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Economic integration, similarity and convergence in the EU and CEECs trade structures

In this paper we look at similarity and convergence between the EU and four of the so-called ”accession countries” of Central and Eastern Europe in terms of trade patterns. We analyse the trade patterns of the Central and Eastern European countries by comparing them to those of the current members of the EU. In particular, this paper focuses on countries’ specialization as suppliers for the EU market. We evaluate the appropriateness of different classes of similarity indices, using rank correlation index and two distance metrics, the Euclidean index and the Bray-Curtis index. We examine the evolution of similarity along time - from 1989 to 2000 - considering both self-similarity (how the export structure of a EU member-to-be has changed with respect to the beginning of the transition process) and EU-similarity (if and how the export structure of a EU member-to-be has changed with respect to the EU export structure). Finally, we examine how the process of integration with the EU and its reflection in the increased relevance of processed trade influenced the CEECs’ current pattern of specialization.

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Paper provided by KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy in its series KITeS Working Papers with number 148.

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Length: 42 pages
Date of creation: Jul 2003
Date of revision: Jul 2003
Handle: RePEc:cri:cespri:wp148
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  1. Clark, Todd E. & van Wincoop, Eric, 2001. "Borders and business cycles," Journal of International Economics, Elsevier, vol. 55(1), pages 59-85, October.
  2. Jayant Menon & Peter Dixon, 1997. "Intra-industry versus inter-industry trade: Relevance for adjustment costs," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(1), pages 164-169, March.
  3. Halpern, László, 1994. "Comparative Advantage and Likely Trade Pattern of the CEECs," CEPR Discussion Papers 1003, C.E.P.R. Discussion Papers.
  4. Babetskii, Ian & Boone, Laurence & Maurel, Mathilde, 2002. "Exchange Rate Regimes and Supply Shocks Asymmetry: The Case of the Accession Countries," CEPR Discussion Papers 3408, C.E.P.R. Discussion Papers.
  5. Jean IMBS, 1998. "Co-Fluctuations," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9819, Université de Lausanne, Faculté des HEC, DEEP.
  6. Michael A. Landesmann & Robert Stehrer, 2002. "Evolving Competitiveness of CEEC’s in an Enlarged Europe," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 23-88, January-F.
  7. Michaël Freudenberg & Françoise Lemoine, 1999. "Central and Eastern European Countries in the International Division of Labour in Europe," Working Papers 1999-05, CEPII research center.
  8. Deardorff, Alan V., 1994. "The possibility of factor price equalization, revisited," Journal of International Economics, Elsevier, vol. 36(1-2), pages 167-175, February.
  9. Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2001. "Patterns and determinants of international fragmentation of production: Evidence from outward processing trade between the EU and Central Eastern European countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 80-104, March.
  10. Paul Krugman, 1992. "Geography and Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610868, December.
  11. Aturupane, Chonira & Djankov, Simeon & Hoekman, Bernard, 1997. "Determinants of Intra-Industry Trade between East and West Europe," CEPR Discussion Papers 1721, C.E.P.R. Discussion Papers.
  12. Redding, Stephen J., 1999. "The Dynamics of International Specialization," CEPR Discussion Papers 2287, C.E.P.R. Discussion Papers.
  13. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October.
  14. Kaminski, Bartlomiej, 2001. "How accession to the European Union has affected external trade and foreign direct investment in Central European economies," Policy Research Working Paper Series 2578, The World Bank.
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