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Dimensions of Quality Upgrading in CEECs

Author

Listed:
  • Uwe Dulleck
  • Neil Foster-McGregor

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Julia Wörz

Abstract

The impact of the Central and Eastern European economies' trade integration with European markets on CEE trade structures has been studied extensively. These studies frequently observe a quality upgrading of CEE exports. In this paper we consider three dimensions of quality upgrading upgrading across industries, upgrading across different quality segments within industries and, finally, product upgrading within quality segments inside industries. For the analysis we partition industries into quality segments based on EU-15 import unit values. The results for ten CEE countries (comprising the CEE-5, the Baltics and Southeastern Europe) and thirteen industries suggest fundamental differences, both across country groups and across the three different notions of quality upgrading. The CEE-5 show no evidence of entering a 'low-quality trap' in all three dimensions. By contrast, while there is a general catching-up process across industries and inside quality segments, the second notion of low-quality specialization may be applicable within the high-tech industries to the performance of the Baltics and Southeast Europe as a group.

Suggested Citation

  • 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.
  • Handle: RePEc:wii:wpaper:29
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    File URL: https://wiiw.ac.at/dimensions-of-quality-upgrading-in-ceecs-dlp-528.pdf
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    References listed on IDEAS

    as
    1. Aiginger, Karl, 1997. "The Use of Unit Values to Discriminate between Price and Quality Competition," Cambridge Journal of Economics, Oxford University Press, vol. 21(5), pages 571-592, September.
    2. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    3. Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(1), pages 62-81, March.
    4. Michael A. Landesmann & Robert Stehrer, 2002. "Evolving Competitiveness of CEEC’s in an Enlarged Europe," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 23-88, January-F.
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    Citations

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    Cited by:

    1. Robert W. R. Price & Andreas Wörgötter, 2011. "Estonia: Making the Most of Globalisation," OECD Economics Department Working Papers 876, OECD Publishing.
    2. Ulrike Hotopp & Slavo Radosevic & Kate Bishop, 2005. "Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-Based Learning," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 41(4), pages 20-37, August.
    3. Jože P. Damijan & Matija Rojec & Maja Ferjančič, 2011. "The Growing Export Performance of Transition Economies: EU Market Access versus Supply Capacity Factors," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(4), pages 489-509, December.
    4. Jože Damijan & Črt Kostevc & Matija Rojec, 2015. "Bright past, shady future? Past and potential future export performance of CEE countries in a comparative perspective," Post-Communist Economies, Taylor & Francis Journals, vol. 27(3), pages 306-335, September.
    5. Michael Landesmann, 2009. "Twenty Years of East-West Integration: Reflections on What We Have Learned," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 5, pages 16-26.
    6. World Bank, 2005. "Lithuania : Investment Climate Assessment," World Bank Other Operational Studies 8568, The World Bank.
    7. Julia Wörz, 2005. "Dynamics of Trade Specialization in Developed and Less Developed Countries," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 41(3), pages 92-111, May.
    8. Ulrike Hotopp & Slavo Radosevic & Kate Bishop, 2005. "Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-Based Learning," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 41(4), pages 20-37, August.
    9. 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.
    10. Christian Ragacs & Beate Resch & Klaus Vondra, 2011. "Austria’s Manufacturing Competitiveness," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 35-61.
    11. 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

    Keywords

    trade composition; quality; CEECs; integration;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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