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Growing export performance of transition economies: EU market access versus supply capacity factors

  • Joze P. Damijan
  • Matija Rojec
  • Maja Ferjancic

Remarkable growth of export performance of transition economies has been one of the most outstanding features of the transition and EU integration processes. The paper looks at the reasons behind this phenomenon. Following Redding and Venables (2003, 2004), and Fugazza (2004), we distinguish between foreign/EU market access and internal supply capacity factors. EU market access has been of great importance for export performance but does not explain the inter country differences. Inter country differences in export performance are explained by internal supply capacity factors, where stable institutional setup, structural reforms, and targeted FDI are in the forefront.

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File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp202.pdf
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Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 20208.

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Date of creation: 2008
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Handle: RePEc:lic:licosd:20208
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  1. Jan Fidrmuc & Jarko Fidrmuc, 2003. "Disintegration and Trade," Review of International Economics, Wiley Blackwell, vol. 11(5), pages 811-829, November.
  2. Peter Egger, 2002. "An Econometric View on the Estimation of Gravity Models and the Calculation of Trade Potentials," The World Economy, Wiley Blackwell, vol. 25(2), pages 297-312, 02.
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  4. MATIJA ROJEC & JOŽE P. DAMIJAN & BORIS MAJCEN, 2004. "Export Propensity of Estonian and Slovenian Manufacturing Firms : Does Foreign Ownership Matter?," Eastern European Economics, M.E. Sharpe, Inc., vol. 42(4), pages 33-54, July.
  5. Redding, Stephen J. & Venables, Anthony J, 2000. "Economic Geography and International Inequality," CEPR Discussion Papers 2568, C.E.P.R. Discussion Papers.
  6. Joze P. Damijan & Matija Rojec, 2004. "Foreign Direct Investment and the Catching-up Process in New EU Member States: Is There a Flying Geese Pattern?," wiiw Research Reports 310, The Vienna Institute for International Economic Studies, wiiw.
  7. Clifford Zinnes & Yair Eilat & Jeffrey Sachs, 2001. "Benchmarking competitiveness in transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(2), pages 315-353, July.
  8. Jakab, Zoltan M. & Kovacs, Mihaly A. & Oszlay, Andras, 2001. "How Far Has Trade Integration Advanced?: An Analysis of the Actual and Potential Trade of Three Central and Eastern European Countries," Journal of Comparative Economics, Elsevier, vol. 29(2), pages 276-292, June.
  9. Nuno Crespo & Maria Paula Fontoura, 2007. "Integration of CEECs into EU Market: Structural Change and Convergence," Journal of Common Market Studies, Wiley Blackwell, vol. 45, pages 611-632, 09.
  10. Uwe Dulleck & Neil Foster-McGregor & Robert Stehrer & Julia Wörz, 2004. "Dimensions of Quality Upgrading in CEECs," wiiw Working Papers 29, The Vienna Institute for International Economic Studies, wiiw.
  11. Peter Havlik & Michael Landesmann & Robert Stehrer, 2001. "Competitiveness of CEE Industries: Evidence From Foreign Trade Specialization and Quality Indicators," wiiw Research Reports 278, The Vienna Institute for International Economic Studies, wiiw.
  12. Peter Havlik, 2005. "Structural Change, Productivity and Employment in the New EU Member States," wiiw Research Reports 313, The Vienna Institute for International Economic Studies, wiiw.
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