Intra-Industry Trade, Foreign Direct Investment and the Reorientation of East European Exports

Simeon Djankov and Bernard Hoekman

No 1377, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In the first half of the 1990s many Central and East European countries (CEECs) experienced very high growth rates of exports to OECD nations. This paper investigates the contribution of sources of comparative advantage and economic restructuring on the pattern, composition and volume of trade. The importance of the redirection of traditional Council of Mutual Economic Assistance goods to OECD markets is found to be limited. A strong relationship is found to exist between export performance and growth in vertical intra-industry trade with the EU. The latter reflects the sourcing of inputs from EU firms, with associated transfers of technology and marketing-related services. Inflows of foreign direct investment are found to be highly correlated with the volume of intra-industry trade.

Keywords: Central and Eastern Europe; Economic Integration; Foregn Direct Investment; Intra-industry Trade (search for similar items in EconPapers)
JEL-codes: F14 F15 F23 (search for similar items in EconPapers)
Date: 1996-04
References: Add references at CitEc
Citations: View citations in EconPapers (43)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1377 (application/pdf)

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:cpr:ceprdp:1377

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1377

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().