Trade, Institutions and Export Specialization
LICOS Discussion Paper No. 234/2009
48 Pages Posted: 27 Apr 2009
Date Written: March 2009
This paper studies whether trade integration between the EU15 and Central Europe has led to more export specialization in Central Europe. Moreover, we analyze the impact of institutional reforms in Central Europe on export specialization. The empirical analysis is set up for thirteen Central European countries over the period 1989-2000. Our results indicate that a reduction in tariffs between EU15 and Central Europe led to increased export specialization in Central Europe. In addition to trade integration, we show that institutional reforms and in particular enterprise reforms contributed to export specialization.
Keywords: trade integration, tariffs, Herfindahl index, exports, institutions
JEL Classification: F14, F15, R12
Suggested Citation: Suggested Citation