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Regional specialization and employment dynamics in transition countries

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  • Traistaru, Iulia
  • Wolff, Guntram B.

Abstract

Trade reorientation and transition to a market economy in Central and East European countries have resulted in structural change, i.e. industrial restructuring and labor reallocation across sectors and regions. In the 1990s, many transition countries have experienced considerable decline in output and employment. In this paper we investigate and explain regional differentials in employment change in three transition countries: Bulgaria, Hungary and Romania. We apply a shift-share analysis using a three-factor decomposition and assess the role of industry mix (structural component), region-specific factors (differential component) and regional competitiveness (allocative component) in explaining regional differentials in employment growth. We find that the variance of regional employment growth is driven almost entirely by region-specific factors. Industry mix and regional competitiveness factors play only a minor role in explaining regional employment dynamics in the three countries included in our study.

Suggested Citation

  • Traistaru, Iulia & Wolff, Guntram B., 2002. "Regional specialization and employment dynamics in transition countries," ZEI Working Papers B 18-2002, University of Bonn, ZEI - Center for European Integration Studies.
  • Handle: RePEc:zbw:zeiwps:b182002
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    Cited by:

    1. Peter Huber, 2007. "Regional Labour Market Developments in Transition: A Survey of the Empirical Literature," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 263-298, September.
    2. Sandy Dall’erba & Yiannis Kamarianaki & Julie Le Gallo & Maria Plotnikova, 2003. "Regional Productivity Differentials in Poland, Hungary and the Czech Republic," Urban/Regional 0310004, EconWPA.
    3. Andreea Vass, 2005. "Romania and the trade and the development approaches to CEE convergence with the EU, under the competitive pressures of integration," IWE Working Papers 151, Institute for World Economics - Centre for Economic and Regional Studies- Hungarian Academy of Sciences.
    4. Christian Bellak, 2004. "The Impact of Enlargement on the Race for FDI," Department of Economics Working Papers wuwp086, Vienna University of Economics and Business, Department of Economics.

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