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Eastern European export performance during transition


  • Nathan Sheets
  • Simona Boata


During the past decade, Eastern European exports have undergone a deep transformation, as communist bloc trading relationships have collapsed and trade with the West has increased. The extent of this geographical re-orientation has generally exceeded the predictions of equilibrium models developed by Hamilton and Winters (1992) and Collins and Rodrik (1991), suggesting the prospect for increased export activity among the transition economies as aggregate demand in these countries strengthens and payment systems mature. Significant changes in the product composition of Eastern European exports have accompanied the geographical reorientation. Exports of manufacturing goods to former communist countries have declined sharply, but exports to the EC across an array of goods -- including heavy machinery -- have grown robustly. Evidence suggests that the observed changes in export composition reflect the redirection of physical goods through price competition and the emergence of market-determined comparative advantage.

Suggested Citation

  • Nathan Sheets & Simona Boata, 1996. "Eastern European export performance during transition," International Finance Discussion Papers 562, Board of Governors of the Federal Reserve System (U.S.).
  • Handle: RePEc:fip:fedgif:562

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    References listed on IDEAS

    1. Hamilton, C.B. & Winters, L.A., 1992. "Opening Up International Trade in Eastern Europe," Papers 511, Stockholm - International Economic Studies.
    2. Dani Rodrik, 1994. "Foreign Trade in Eastern Europe's Transition: Early Results," NBER Chapters,in: The Transition in Eastern Europe, Volume 2: Restructuring, pages 319-356 National Bureau of Economic Research, Inc.
    3. Wang, Zhen Kun & Winters, L. Alan, 1991. "The Trading Potential of Eastern Europe," CEPR Discussion Papers 610, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Angela Cheptea & Guillaume Gaulier & Soledad Zignago, 2004. "The World Market: Market Shares and Export Performances," La Lettre du CEPII, CEPII research center, issue 231.

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    Europe; Eastern ; Exports;


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