25 Pages Posted: 22 Sep 2011
Date Written: October 2011
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: 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
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