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Structural Change and Trade Integration on EU-NIS Borders


  • Peter Havlik



This paper investigates the process of trade integration between the enlarged European Union and the Newly Independent States (NIS), focusing on the new EU member states (NMS) and selected NIS (Russia, Ukraine, Belarus, Moldova and Kazakhstan). The paper analyses the evolution of the regional and commodity composition of trade in the countries concerned. A detailed market share analysis reveals the emerging trade specialization patterns. There has been a general trade reorientation of both NMS and (less so) the NIS towards the West. The recent trade developments on EU?NIS borders indicate a closer trade integration among the NMS, a declining trade integration among the NIS, as well contradictory shifts in NMS?NIS exports and imports. The importance of the NIS as export markets for the NMS is growing, in particular for the NIS neighbours. The bulk of EU exports is made up of manufacturing products. By contrast, EU imports from the NMS and NIS display a much more distinct //? OR: diversified?// pattern. The key NMS manufacturing export commodities to the NIS are chemicals, machinery & equipment, motor vehicles and food products, whereas NMS manufacturing imports from the NIS are dominated by basic metals, refined petroleum, chemicals and fabricated metal products, and there is a high concentration on just a few basic manufactures. The NMS increasingly specialize on high-tech and medium-high-tech products. The wide-ranging modernization and industrial restructuring in the NMS has been facilitated by the process of EU integration and by massive inflows of FDI whereas in the NIS the resource specialization generally increased as reforms and restructuring were delayed. It is questionable whether the NIS will be able to revamp their industrial structure without significantly stepping up reform efforts, trade integration and attracting more FDI.

Suggested Citation

  • Peter Havlik, 2007. "Structural Change and Trade Integration on EU-NIS Borders," FIW Working Paper series 003, FIW.
  • Handle: RePEc:wsr:wpaper:y:2007:i:003

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    References listed on IDEAS

    1. Iga Magda & Anna Wziatek-Kubiak, 2006. "Changes in the Competitive Position of the Czech Republic, Hungary and Poland in the EU Market," CASE Network Studies and Analyses 0317, CASE-Center for Social and Economic Research.
    2. Michael Landesmann & Julia Wörz, 2006. "CEEC's Competitiveness in the Global Context," wiiw Research Reports 327, The Vienna Institute for International Economic Studies, wiiw.
    3. Peter Havlik, 2003. "Restructuring of manufacturing industry in the central and east european countries," Prague Economic Papers, University of Economics, Prague, vol. 2003(1).
    4. Angela Cheptea & Guillaume Gaulier & Soledad Zignago, 2004. "The World Market: Market Shares and Export Performances," La Lettre du CEPII, CEPII research center, issue 231.
    5. Helen Boss & Peter Havlik, 1994. "Slavic (dis)union: consequences for Russia, Belarus and Ukraine," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(2), pages 233-254, June.
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    Cited by:

    1. Peter Havlik, 2009. "The Russian Economy in the Global Turmoil," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    2. Pekka Sutela, 2009. "Russian Finance: Drag or Booster for Future Growth?," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    3. Zeljko Bogetic, 2009. "Russia’s Financial Crisis: Causes, Consequences and Prospects," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    4. Ewald Nowotny, 2009. "Opening Remarks," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    5. Joseph F Francois & Julia Worz, 2011. "Structural Components of International Trade Growth 1995–2009," Chapters,in: Post-Crisis Growth and Integration in Europe, chapter 22 Edward Elgar Publishing.
    6. Fungáčová Z. & Solanko L., 2009. "Risk-taking by Russian banks: do location, ownership and size matter?," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 13(1), pages 101-129.
    7. Morten Balling, 2009. "Introduction," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    8. Cyril Pineau-Valencienne, 2009. "Russian financial institutions and the oil and gas sector: Funding and recycling," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    9. Vladimir V.Osakovsky & Valery Inyushin & Debora Revoltella, 2009. "The Russian banking sector: what to expect?," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    10. Alexander Lehmann, 2009. "Banks and financial reform: their role in sustaining Russia’s growth," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    11. Joseph F. Francois & Julia Wörz, 2011. "Shifts in International Trade and Value Added from 1995 to 2007: Insights into the Drivers of Growth," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 37-56.
    12. Stephan Barisitz, 2009. "Russian Banking in Recent Years: Gaining Depth in a Fragile Environment," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    13. Stephan Barisitz & Zeljko Bogetic & Zuzana Fungacova & Laura Solanko & Peter Havlik & Valery Invushin & Vladimir V. Osakovsky & Debora Revoltella & Alexander Lehmann & Ewald Nowotny & Cyril Pineau-Val, 2009. "Current Trends in the Russian Financial System," SUERF Studies, SUERF - The European Money and Finance Forum, number 2009/2 edited by Morten Balling, August.
    14. Peter Havlik, 2014. "Vilnius Eastern Partnership Summit: Milestone In Eu-Russia Relations – Not Just For Ukraine," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 21-51, March.

    More about this item


    EU; Trade Integration; NIS; NMS; compostion of trade;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies


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