The structure and evolution of trade in Central and Eastern Europe in the 1990s

Manuel Palazuelos-Martinez

Europe-Asia Studies, 2007, vol. 59, issue 1, 111-135

Abstract: This article analyses trade between some of the most advanced Central and Eastern European countries, using Spain as a benchmark, in order to find the determinants and characteristics of the trade patterns that have emerged in the 1990s. The empirical study includes the calculation of different indexes, namely Balassa's index of comparative advantage and the adjusted Grubel – Lloyd index. The analysis assesses whether these trade patterns can be explained by specialisation according to comparative advantage or by intra-industry trade. While trade theory often treats both as alternatives, I find that for the case of these countries they can complement each other.

Date: 2007
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DOI: 10.1080/09668130601072837

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