IDEAS home Printed from https://ideas.repec.org/p/liu/liucec/182.html
   My bibliography  Save this paper

New comparative advantages in the Central and Eastern European countries

Author

Listed:
  • Alessia Amighini
  • Stefano Chiarlone

Abstract

Central and Eastern European Countries have increased the weight of international trade on their GDP and the role of Foreign Direct Investment. Some are key final market for EU companies. Their integration, though, has been triggered by outsourcing and offshoring. Data show that their industrial structure is evolving towards new specialisation in the backward phase of the production process. Central European countries’ competitiveness in traditional clothing and fashion sectors is decreasing, while Eastern countries are improving. The comparative advantage in some advanced sectors, instead, are on the rise. This happen, mainly, in the “parts and intermediates” categories both as for import and as for export. Such division of labour suggest that Central and Eastern European countries are complementary to EU competitiveness. They contribute to keep costs under control. This may harm Italian firms’ competitiveness if the don’t follow the same practices as other companies. Finally, the Italian firms engaged in assemblying activities without own brands might be hit by such practices.

Suggested Citation

  • Alessia Amighini & Stefano Chiarlone, 2005. "New comparative advantages in the Central and Eastern European countries," LIUC Papers in Economics 182, Cattaneo University (LIUC).
  • Handle: RePEc:liu:liucec:182
    as

    Download full text from publisher

    File URL: http://www.biblio.liuc.it/liucpap/pdf/182.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Françoise Lemoine, 1994. "CEEC Exports to the EC : Country Differentiation and Commodity Diversification," Working Papers 1994-15, CEPII research center.
    2. Halpern, László, 1994. "Comparative Advantage and Likely Trade Pattern of the CEECs," CEPR Discussion Papers 1003, C.E.P.R. Discussion Papers.
    3. Feenstra, R.C. & Hanson, G.H., 1995. "Foreign Investment, Outsourcing and Relative Wages," Papers 95-14, California Davis - Institute of Governmental Affairs.
    4. 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.
    5. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    6. Michael A. Landesmann, 2003. "Structural features of economic integration in an enlarged Europe: patterns of catching-up and industrial specialisation," European Economy - Economic Papers 2008 - 2015 181, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. Neven, Damien J, 1994. "Trade Liberalization with Eastern Nations. How Sensitive?," CEPR Discussion Papers 1000, C.E.P.R. Discussion Papers.
    8. J. Caetano & A. Galego & E. Vaz & C. Vieira & I. Vieira, 2002. "The Eastward Enlargement of the Eurozone: Trade and FDI," Eastward Enlargement of the Euro-zone Working Papers wp07, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Aug 2002.
    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. Kornai Janos, 1994. "Transformational Recession: The Main Causes," Journal of Comparative Economics, Elsevier, vol. 19(1), pages 39-63, August.
    11. Hoekman, Bernard & Djankov, Simeon, 1996. "Intra-industry trade, foreign direct investment, and the reorientation of Eastern European exports," Policy Research Working Paper Series 1652, The World Bank.
    12. Alessia Amighini & Roberta Rabellotti, 2004. "How do Italian footwear industrial districts face globalization?," European Planning Studies, Taylor & Francis Journals, vol. 14(4), pages 485-502, November.
    13. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    14. Michael Landesmann, 2000. "Structural Change in the Transition Economies, 1989 to 1999," wiiw Research Reports 269, The Vienna Institute for International Economic Studies, wiiw.
    15. Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2002. "Moving to Central-Eastern Europe: Fragmentation of Production and Competitiveness of the European Textile and Apparel Industry," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 209-282, January-F.
    16. Naujoks, Petra & Schmidt, Klaus-Dieter, 1995. "Foreign direct investment and trade in transition countries: Tracing links," Kiel Working Papers 667, Kiel Institute for the World Economy (IfW).
    17. Mr. James McHugh & Mr. Theodora Kosma & Antonis Adam, 2003. "Trade Liberalization Strategies: What Could South Eastern Europe Learn From Cefta and Bfta?," IMF Working Papers 2003/239, International Monetary Fund.
    18. Arndt, Sven W., 1997. "Globalization and the open economy," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 71-79.
    19. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Jose Caetano & Aurora Galego, 2007. "In Search for the Determinants of Intra-Industry Trade within an Enlarged Europe," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 5(2), pages 163-183.
    3. Horgos, Daniel, 2009. "Labor market effects of international outsourcing: How measurement matters," International Review of Economics & Finance, Elsevier, vol. 18(4), pages 611-623, October.
    4. Luca De Benedictis & Lucia Tajoli, 2003. "Economic integration, similarity and convergence in the EU and CEECs trade structures," KITeS Working Papers 148, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2003.
    5. Wilhelm Kohler, 2002. "The Distributional Effects of International Fragmentation," Economics working papers 2002_01, Department of Economics, Johannes Kepler University Linz, Austria.
    6. Wilhelm Kohler, 2003. "Factor Price Frontiers with International Fragmentation of Multistage Production," Economics working papers 2003-05, Department of Economics, Johannes Kepler University Linz, Austria.
    7. Wilhelm Kohler, 2002. "Aspects of International Fragmentation," Economics working papers 2002-08, Department of Economics, Johannes Kepler University Linz, Austria.
    8. Hijzen, Alexander & Görg, Holger & Hine, Robert C., 2003. "International Fragmentation and Relative Wages in the UK," IZA Discussion Papers 717, Institute of Labor Economics (IZA).
    9. Wilhelm Kohler, 2003. "The Distributional Effects of International Fragmentation," German Economic Review, Verein für Socialpolitik, vol. 4(1), pages 89-120, February.
    10. Helg, Rodolfo & Tajoli, Lucia, 2005. "Patterns of international fragmentation of production and the relative demand for labor," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 233-254, August.
    11. Katharina Längle, 2020. "Offshoring: What Consequences for Workers? Evidence from Global Value Chains," Documents de travail du Centre d'Economie de la Sorbonne 20005, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    12. Hongbo CAI & Hao CHEN & Xinhe LIU, 2012. "Offshoring And Employment Structure: Evidence From China," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 7(1(19)/ Sp), pages 35-47.
    13. Hartmut Egger & Peter Egger, 2005. "The Determinants of EU Processing Trade," The World Economy, Wiley Blackwell, vol. 28(2), pages 147-168, February.
    14. Katharina Längle, 2020. "Offshoring: What Consequences for Workers? Evidence from Global Value Chains," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-02899944, HAL.
    15. Maritza Sotomayor, 2016. "Vertical Specialization of Production: Critical Review and Empirical Evidence for the Mexican Manufacturing Industries 1994-2014," International Journal of Business and Social Research, LAR Center Press, vol. 6(2), pages 11-28, February.
    16. J. Caetano & A. Galego & E. Vaz & C. Vieira & I. Vieira, 2002. "The Eastward Enlargement of the Eurozone: Trade and FDI," Eastward Enlargement of the Euro-zone Working Papers wp07, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Aug 2002.
    17. Everett Grant & Julieta Yung, 2019. "Upstream, Downstream & Common Firm Shocks," Globalization Institute Working Papers 360, Federal Reserve Bank of Dallas.
    18. José Manuel Martins Caetano & Aurora Galego & Elsa Vaz & Isabel Vieira & Carlos Vieira, 2002. "The Impacts of the Eurozone´s Eastward Enlargement on Trade and FDI: Survey of the Literature," Economics Working Papers 1_2002, University of Évora, Department of Economics (Portugal).
    19. Pol Antràs & Esteban Rossi-Hansberg, 2009. "Organizations and Trade," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 43-64, May.
    20. Katharina Längle, 2020. "Offshoring: What Consequences for Workers? Evidence from Global Value Chains," Post-Print halshs-02899944, HAL.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:liu:liucec:182. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/liuccit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Laura Ballestra (email available below). General contact details of provider: https://edirc.repec.org/data/liuccit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.