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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.

Suggested Citation

  • Joze P. Damijan & Matija Rojec & Maja Ferjancic, 2008. "Growing export performance of transition economies: EU market access versus supply capacity factors," LICOS Discussion Papers 20208, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:20208

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    References listed on IDEAS

    1. Rosati MEP, Dariusz, 1992. "Problems of Post-CMEA Trade and Payments," CEPR Discussion Papers 650, C.E.P.R. Discussion Papers.
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    3. 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.
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    6. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, vol. 62(1), pages 53-82, January.
    7. MATIJA ROJEC & JOŽE P. DAMIJAN & BORIS MAJCEN, 2004. "Export Propensity of Estonian and Slovenian Manufacturing Firms : Does Foreign Ownership Matter?," Eastern European Economics, Taylor & Francis Journals, vol. 42(4), pages 33-54, July.
    8. 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.
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    12. 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.
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    Cited by:

    1. Goran Nikolić, 2013. "Is There A Structural Improvement In The Merchandise Exports Of The Balkan Countries In The Period 2000-2012?," Economic Annals, Faculty of Economics, University of Belgrade, vol. 58(196), pages 99-132, January –.

    More about this item


    export performance; transition economies of Central and Eastern Europe; (EU) market access; supply capacity; institutional setup; FDI;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General

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