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Successes of trade reorientation and expansion in post-communist transition: an enterprise-level approach

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  • Jan Winiecki

    (Europa Universitat Viadrina, Lehrstuhl fiir Volkswirtschaftslehre ins. internationale Wirtschaftsbeziehungen, Frankfurt/Oder (Germany))

Abstract

The article offers an approach to the westward reorientation of foreign trade by the post-communist economies of East-Central Europe at the micro--i.e. enterprise--level. Having presented the dynamics of reorientation and its theoretical/historical underpinnings, the writer then goes on to underline the surprisingly large number of microeconomic determinants behind the strong westbound export surge. The article starts with the most often cited factor, namely the distressed sale argument, and then shifts the focus to determinants that have received far less attention: an unusual extension of the "distressed sale" argument and another, more important one, namely the legacy of the oversized industrial sector and resultant availability of firms ready (or forced) to test their mettle on the world markets. The following section extends the list of determinants to foreign direct investment and the growing export activity of domestic de novo firms. The linkages between the determinants are also pointed out. The final section sums up the observations.

Suggested Citation

  • Jan Winiecki, 2000. "Successes of trade reorientation and expansion in post-communist transition: an enterprise-level approach," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 53(213), pages 187-223.
  • Handle: RePEc:psl:bnlaqr:2000:24
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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/10351/10256
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    References listed on IDEAS

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    1. Brenton, Paul & Gros, Daniel, 1997. "Trade Reorientation and Recovery in Transition Economies," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(2), pages 65-76, Summer.
    2. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
    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. Bartlomiej Kaminski, 1998. "Poland's transition from the perspective of performance in EU markets," Post-Communist Economies, Taylor & Francis Journals, vol. 10(2), pages 217-239.
    5. Hans‐Peter Lankes & A. J. Venables, 1996. "Foreign direct investment in economic transition: the changing pattern of investments," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 331-347, October.
    6. 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.
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    Cited by:

    1. Okhrin, Irena & Richter, Knut, 2010. "The linear dynamic lot size problem with minimum order quantities," Discussion Papers 283, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    2. Karolien De Bruyne & Jan Van Hove, 2013. "The impact of European enlargement on the direction and prospects of Brussels exports," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 9(3), pages 188-214.
    3. Okhrin, Irena & Richter, Knut, 2011. "An O(T3) algorithm for the capacitated lot sizing problem with minimum order quantities," European Journal of Operational Research, Elsevier, vol. 211(3), pages 507-514, June.
    4. Oxana Babecká Kucharčuková & Jan Babecký & Martin Raiser, 2012. "Gravity Approach for Modelling International Trade in South-Eastern Europe and the Commonwealth of Independent States: The Role of Geography, Policy and Institutions," Open Economies Review, Springer, vol. 23(2), pages 277-301, April.
    5. Yener Kandogan, 2003. "The Reorientation of Transition Countries??? Exports: Changes in Quantity, Quality and Variety," William Davidson Institute Working Papers Series 2003-631, William Davidson Institute at the University of Michigan.
    6. Yener Kandogan, 2003. "TDoes Product Differentiation Explain The Increase in Exports of Transition Countries?," William Davidson Institute Working Papers Series 2003-599, William Davidson Institute at the University of Michigan.

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    More about this item

    Keywords

    Foreign Trade; Trade; Trade reorientations; post-communist; East-Europe;
    All these keywords.

    JEL classification:

    • N74 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: 1913-
    • N84 - Economic History - - Micro-Business History - - - Europe: 1913-
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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