(De)industrialisation and lessons for industrial policy in Central and Eastern Europe

Nebojsa Stojcic and Zoran Aralica

Post-Communist Economies, 2018, vol. 30, issue 6, 713-734

Abstract: Over the past two and a half decades, the economic landscape of Central and Eastern European countries (CEECs) has considerably changed. The demise of traditional industries and the rise of the service sector during the 1990s inclined economic structure towards deindustrialisation. In years that followed, new industries emerged in many of these countries and brought them back on the route of reindustrialisation. Across countries, this process developed at an uneven pace. The recent rise of awareness about the importance of industrial development for the well-being of nations makes it relevant to investigate the sources behind changes in the economic structure of CEECs. Our findings reveal that reindustrialisation takes place at an uneven pace. No support was found for horizontal economy-wide industrial policies advocated within new classical economics. Strong impulse to reindustrialisation comes through improvements in export sophistication. Such findings are in line with those on the position of CEECs in global value chains.

Date: 2018
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DOI: 10.1080/14631377.2018.1443251

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