Growing Export Performance of Transition Economies: EU Market Access Versus Supply Capacity Factors
LICOS Centre for Institutions and Economic Performance Discussion Paper No. 202/2008
24 Pages Posted: 19 Mar 2008
Date Written: 2008
Remarkable growth of export performance of transition economies has been one of the most outstanding features of the transition and EU integration processes. The paper looks at the reasons behind this phenomenon. Following Redding and Venables (2003, 2004), and Fugazza (2004), we distinguish between foreign/EU market access and internal supply capacity factors. EU market access has been of great importance for export performance but does not explain the inter country differences. Inter country differences in export performance are explained by internal supply capacity factors, where stable institutional setup, structural reforms, and targeted FDI are in the forefront.
Keywords: export performance, transition economies of Central and Eastern Europe
JEL Classification: F120, F150, F210, O100, P300
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