Product variety and the export pattern of Poland 1999-2006
The goal of this article is to investigate the role of product variety and changes in the product variety in the patter of exports of Poland a middle-sized open economy in the second phase of economic transition to a benchmark group of countries – EU15. The analysis covers the period 1999-2006 and is carried out on highly disaggregated trade data. In the analysis we utilize both simple index of variety of products as well as an index of relative variety of products. Attention is given to the scope and structure of intra-industry trade. The overall product variety in exports to EU15 as measured by simple product counts is found to have decreased while relative product variety in comparison to EU15 Member States remained at roughly unchanged level. Furthermore we investigate the link between the changes in export variety and the growth of TFP in Polish manufacturing industry sectors. The conclusions are drawn from dynamic panel data model controlling for several features suggested by the literature of the subject. The results are rather intriguing and need further robustness tests.
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