CEECs integration into regional and global production networks

Inmaculada Martínez-Zarzoso, Anca M. Voicu and Martina Vidovic

No 125, University of Göttingen Working Papers in Economics from University of Goettingen, Department of Economics

Abstract: This paper examines the involvement of the CEECs into regional and global production networks over the period 1999 to 2009. We employ a theoretically justified gravity model which incorporates the extensive margin of trade and accounts for firm heterogeneity. We first estimate the model for highly disaggregated exports (SITC 5-digits) in final goods, and then augment it by including the corresponding imported intermediate products from the OECD together with the usual control variables. Next, we estimate the model for each trade margin (extensive and intensive) separately to evaluate the effects of economic integration on exports and imports of each category of goods. Our results indicate that the CEECs have indeed become more integrated into regional production networks and this has had a positive impact in terms of increasing trade volumes and trade varieties between the two parts of the European continent.

Keywords: exports; gravity equation; panel data; production networks; economic integration; trade flows (search for similar items in EconPapers)
JEL-codes: D31 F10 F14 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cegedp:125

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