Trade, Institutions and Export Specialization

LICOS Discussion Paper No. 234/2009

48 Pages Posted: 27 Apr 2009

See all articles by Karen Crabbe

Karen Crabbe

KU Leuven - Department of Economics

Michel A. R. Beine

University of Luxemburg; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: March 2009

Abstract

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

Crabbe, Karen and Beine, Michel A. R., Trade, Institutions and Export Specialization (March 2009). LICOS Discussion Paper No. 234/2009, Available at SSRN: https://ssrn.com/abstract=1394224 or http://dx.doi.org/10.2139/ssrn.1394224

Karen Crabbe (Contact Author)

KU Leuven - Department of Economics ( email )

Leuven, B-3000
Belgium

Michel A. R. Beine

University of Luxemburg ( email )

L-1511 Luxembourg
Luxembourg

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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