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The Quality and Variety of Exports from the New EU Member States

25 Pages Posted: 22 Sep 2011  

Konstantins Benkovskis

Bank of Latvia; Stockholm School of Economics in Riga

Ramune Rimgailaite

affiliation not provided to SSRN

Date Written: October 2011

Abstract

The goal of this article is to evaluate the variety and quality of exports from the new EU member states (NMSs) in the period 1999–2009. The practical relevance of such an analysis is threefold: recent studies underline the importance of export variety for economic growth; empirical results show that export variety was influenced by the EU membership; and looking separately at export quality permits a better understanding of price competitiveness. Our results show that all NMSs significantly increased the average number of brands exported to the EU market, the largest increases being observed in 2004 and after. This indicates that integration into the EU market occurs in the extensive as well as the intensive dimension. We also find that all NMSs increased the average quality of their exports during the decade studied although there are differences between countries. Thus, a large part of the increase in the prices of exports from NMSs resulted from improving quality and did not result in a loss of competitiveness. Finally, estimates of relative quality are much more stable than relative prices, suggesting that our measure of relative quality is better than the traditional proxy.

Keywords: C43, F12, F14, O52, New EU member states, exports, quality, variety

Suggested Citation

Benkovskis, Konstantins and Rimgailaite, Ramune, The Quality and Variety of Exports from the New EU Member States (October 2011). Economics of Transition, Vol. 19, Issue 4, pp. 723-747, 2011. Available at SSRN: https://ssrn.com/abstract=1932018 or http://dx.doi.org/10.1111/j.1468-0351.2011.00423.x

Konstantins Benkovskis (Contact Author)

Bank of Latvia ( email )

Riga
Latvia

Stockholm School of Economics in Riga ( email )

Strelnieku iela 4a
Riga, LV 1010
Latvia

Ramune Rimgailaite

affiliation not provided to SSRN

No Address Available

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