Trade Specialisation and Economic Convergence: Evidence from two Eastern European Countries

Guglielmo Maria Caporale, Christophe Rault, Robert Sova and Anamaria Sova

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: This paper analyses trade specialisation dynamics in two Eastern European countries (Romania and Bulgaria – EEC-2) vis-à-vis the core EU member states (EU-15) over the period 1990-2006. Specifically, we focus on whether there is a shift towards intra-industry trade leading to economic convergence and technological catch-up. We use recently developed static (FEM, REM and FEVD) and dynamic (GMM) panel data methods which take into account possible heterogeneity. Our empirical results indicate that intra-industry trade has indeed increased, but it is of the vertical rather than the horizontal type, resulting in complementary rather than competitive production patterns.

Keywords: Gravity Models; Panel Data models; Trade Specialisation; Comparative Advantage (search for similar items in EconPapers)
Pages: 28 pages JEL Classification: F13, F15, C23
Date: 2011-09
New Economics Papers: this item is included in nep-int and nep-tra
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Related works:
Working Paper: Trade Specialisation and Economic Convergence: Evidence from Two Eastern European Countries (2009)
Working Paper: TRADE SPECIALISATION AND ECONOMIC CONVERGENCE: EVIDENCE FROM TWO EASTERN EUROPEAN COUNTRIES (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c016_071

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