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

Guglielmo Maria Caporale, Christophe Rault, Robert Sova (robertsova@yahoo.com) and Anamaria Sova

No 875, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

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)
JEL-codes: C23 F13 F15 (search for similar items in EconPapers)
Pages: 27 p.
Date: 2009
New Economics Papers: this item is included in nep-eec, nep-int and nep-tra
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Citations: View citations in EconPapers (7)

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https://www.diw.de/documents/publikationen/73/diw_01.c.96866.de/dp875.pdf (application/pdf)

Related works:
Working Paper: Trade Specialisation and Economic Convergence: Evidence from two Eastern European Countries (2011)
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:diw:diwwpp:dp875

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