Duration of trade of former communist countries in the EU market

Imre Fertő and Karoly Attila Soos

Post-Communist Economies, 2009, vol. 21, issue 1, 31-39

Abstract: This article analyses the duration of exports of individual products of former communist countries to the enlarged European Union (EU25) employing survival analysis. The results show that the duration of trade differs across EU10 and EU15 markets: for the majority of countries the length of trade is greater in EU10 markets than in EU15 markets. The estimations suggest that differentiated products are traded for more extended periods than homogeneous products. In addition, trade relationships starting with large initial sales are more likely to survive the observed five-year period than those starting with small values. Finally, the estimations are robust to both markets segments.

Date: 2009
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DOI: 10.1080/14631370802663604

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