The Intra-Industry Trade of the Czech Republic in the Economic Transition

Karel Janda and Daniel Münich

Emerging Markets Finance and Trade, 2004, vol. 40, issue 2, 27-50

Abstract: In this paper, we provide an overview of the development of Czech trade and its structure and investigate the nature of Czech intra-industry trade (IIT) and its labor market determinants. We evaluate the evolution of the Czech trade in the context of other transition economies--the Central European Free Trade Agreement (CEFTA) countries, the Baltic countries, and the Commonwealth of Independent States (CIS). In our analysis, we use decomposition of IIT into vertical and horizontal components. The Czech Grubel-Lloyd index (GLI) of 75 percent at the SITC two-digit level is still somehow lower than the values for comparable EU countries, but this difference is not high. This indicates a relatively high level of Czech integration into European and world economies. This result is supported by the comparison of IIT in the trade between the European Union and seven European transition economies undertaken by Fidrmuc (2000), showing that the Czech Republic has the highest IIT out of all these countries. Also, the structure of Czech IIT with respect to its horizontal and vertical elements is comparable with the structure of IIT in EU countries. The results of our cross-industry analysis of labor market determinants of IIT show that qualitative characteristics of the labor force are statistically significant predictors for IIT after controlling for time changes and character of industry.

Keywords: economic transition; intra-industry trade; labor (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=6JTG49E5YDY7NWDN (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:40:y:2004:i:2:p:27-50

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().