Vertical and horizontal patterns of intra-industry trade between EU and candidate countries
Hubert Gabrisch
IWH-Sonderhefte,
No. 2,
2003
Abstract
Trade between the European Union (EU) and the Transition Economies (TE) is increasingly characterised by intra-industry trade. The decomposition of intra-industry trade into horizontal and vertical shares reveals predominantly vertical structures with decisively more quality advantages for the EU and less quality advantages for TE countries whenever trade has been liberalised. Empirical research on factors determining this structure in a EU-TE framework lags behind theoretical and empirical research on horizontal and vertical trade in other regions of the world. The main objective of this paper is therefore to contribute to the ongoing debate on EU-TE trade structures by offering an explanation of vertical trade. We utilise a cross-country approach in which relative wage differences, country size and income distribution play a leading role. We find first that relative differences in wages (per capita income) and country size explain intra-industry trade when trade is vertical and completely liberalised, and second that cross-country differences in income distribution play no explanatory role. We conclude that EU firms have been able to increase their product quality and to shift low-quality segments to TE countries. This may suggest a product-quality cycle prevalent in EU-TE trade.
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The Trade Potential of the Acceding Countries in the Enlarged EU
Bogdan Gorokhovskij
Wirtschaft im Wandel,
No. 3,
2003
Abstract
In den vergangenen zehn Jahren verzeichnete derHandel der EU mit den mittel- und osteuropäischenBeitrittskandidaten überdurchschnittlicheWachstumsraten. Neben der Steigerung der Pro-Kopf-Einkommen sorgte vor allem die Reintegrationder ehemaligen Planwirtschaften in die Weltwirtschaftfür diesen signifikanten Handelsanstieg.Die Errichtung von Freihandelszonen mit den einzelnenBeitrittsländern erzeugte zusätzlich handelssteigerndeImpulse. Zukünftig könnten sich imZuge der EU-Osterweiterung Chancen für eineweitere Vertiefung der Handelsintegration mitMittel- und Osteuropa ergeben. Mit Hilfe einesGravitationsmodells des Außenhandels der EULänderkann das langfristige Potenzial im Handelmit den Beitrittsländern in der erweiterten Uniongeschätzt werden, das sich ausschließlich aus Integrationseffektenergibt. Danach wäre mit einerAusweitung des Potenzials um 20% bis 60% gegenüberdem Vergleichsjahr (2000) zu rechnen.
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The home market - precondition for export business of East German industrial enterprises
Brigitte Loose, Udo Ludwig
Wirtschaft im Wandel,
No. 2,
2003
Abstract
This article deals with the presence of East German manufacturers in foreign product markets. The following questions are discussed: Which factories sell their products abroad? What influences the export activities? Hypotheses are built on the basis of different trade theories, such as the relative position of the enterprises in their home market, the cumulation of learning effects in production and sales, the saturation of the domestic market and others. Individual data sets from industrial surveys for 1995 and 2000 are used to reveal the relationship between the company’s technical as well as institutional characteristics and their participation in export activities. Bivariate and multivariate approaches are applied. Additionally, a sample of enterprises has been asked to assess their export activities.
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Der Exportsektor im ostdeutschen Verarbeitenden Gewerbe und seine Bedeutung für das betriebliche Wachstum - eine Auswertung von Mikrodaten der amtlichen Statistik und einer IWH-Industrieumfrage -
Brigitte Loose, Udo Ludwig
IWH Discussion Papers,
No. 169,
2003
Abstract
This paper deals with the presence of East German manufacturers in foreign product markets. The following questions are discussed: Which factories sell their products abroad? What influences the export activities? Hypotheses are built on the basis of different trade theories, such as the relative position of the enterprises in their home market, the cumulation of learning effects in production and sales, the saturation of the domestic market and others. Individual data sets from industrial surveys for 1995 and 2000 are used to reveal the relationship between the company’s technical as well as institutional characteristics and their participation in export activities. Bivariate and multivariate approaches are applied. Additionally, a sample of enterprises has been asked to assess their export activities.
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Intra-industry trade and the productivity gap in the enlarged EU
Hubert Gabrisch
Wirtschaft im Wandel,
No. 16,
2002
Abstract
Trade between the European Union (EU) and the Transition Economies (TE) is increasingly characterised by intra-industry trade. The decomposition of intra-industry trade into horizontal and vertical shares reveals predominantly vertical structures with decisively more quality advantages for the EU and less quality advantages for TE countries whenever trade has been liberalised. Sizeable foreign direct investment did obviously not reduce the superiority of producers in the EU in terms of technology, capital and human capital. The productivity gap between the EU and TE countries remains. EU firms have been able to increase their product quality and to shift low-quality segments of production to TE countries. This may suggest a product-quality cycle prevalent in EU-TE trade. The testing of this model confirms the assumptions.
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The use of unit values in estimating trade-related capital flight -The case of CEE countries with special focus on Russia
Hubert Gabrisch, Karin Szalai
IWH Discussion Papers,
No. 161,
2002
Abstract
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Causes of the retarded integration of EU and CIS-countries
Bogdan Gorokhovskij
Wirtschaft im Wandel,
No. 3,
2002
Abstract
Die wirtschaftliche Integration zwischen der EU und den drei GUS-Ländern Russland, Ukraine und Belarus (GUS-3) befindet sich auf einem vergleichsweise niedrigen Entwicklungsstand. Verantwortlich dafür ist ein nur enger handelspolitischer Rahmen der Liberalisierung in Form von Partnerschafts- und Kooperationsabkommen. Dieser Rahmen wurde zudem von den drei Ländern nicht ausreichend umgesetzt. Gründe dafür waren erstens die noch unzureichende institutionelle Transformation in den Ländern, zweitens der geringe Anreiz, den diese Abkommen für die Länder bieten, und drittens die mangelnde Einbettung in längerfristige strategische Ziele. Eine Intensivierung der Wirtschaftsbeziehungen mit den GUS-Ländern ist aber erforderlich, wenn die erweiterte Union ihrem Ziel, das Wohlstandsgefälle zwischen ihr und der GUS zu verringern, näherkommen möchte. Die erste Voraussetzung dazu ist die Fortführung der institutionellen und marktwirtschaftlichen Transformation in den GUS-Ländern. Aber auch unter diesen günstigeren Bedingungen würden sich die Partnerschafts- und Kooperationsabkommen als wenig effektiv erweisen. Angesichts der bereits erreichten Reformfortschritte in Russland und der Ukraine wäre zu überlegen, die bisherigen Abkommen durch einen umfassenden Zollabbau zu ergänzen.
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Intra-industry trade between European Union and Transition Economies. Does income distribution matter?
Hubert Gabrisch, Maria Luigia Segnana
IWH Discussion Papers,
No. 155,
2002
Abstract
EU-TE trade is increasingly characterised by intra-industry trade. For some countries (Czech Republic), the share of intra-industry trade in total trade with the EU approaches 60 percent. The decomposition of intra-industry trade into horizontal and vertical shares reveals overwhelming vertical structures with strong quality advantages for the EU and shrinking quality advantages for TE countries wherever trade has been liberalised. Empirical research on factors determining this structure in an EU-TE framework has lagged theoretical and empirical research on horizontal trade and vertical trade in other regions of the world. The main objective of this paper is, therefore, to contribute to the ongoing debate over EU-TE trade structures, by offering an explanation of intra-industry trade. We utilize a cross-country approach in which relative wage differences and country size play a leading role. In addition, as implied by a model of the productquality
cycle, we examine income distribution factors as determinates of the emerging
EU-TE structure of trade flows. Using OLS regressions, we find first, that relative
differences in wages (per capita income) and country size explain intra-industry trade, when trade is vertical and completely liberalized and second, that cross country differences in income distribution play no explanatory role. We conclude that if increasing wage differences resulted from an increasing productivity gap between highquality and low-quality industries, then vertical structures will, over the long-term create significant barriers for the increase in TE incomes and lowering EU-TE income differentials.
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East German exports still show high dynamics in first half of 2001
Ingrid Haschke
Wirtschaft im Wandel,
No. 16,
2001
Abstract
Since last year, growth has weakened sharply in most regions of the world, accompanied by a marked decline in world trade growth. There was a significant impact on demand and activity in the industrial countries. In contrast to that the data indicate increasing east German exports of goods. In the first half of 2001 the exports of the new states rose sharply by around 25% compared with the period of the previous year and the share of exports in GDP rose.
The export structure by regions has changed over time. At the beginning of the nineties the main customers of east German exports were still central and eastern Europe. Now almost half of the goods are delivered to EU-countries. Cars and electrical engineering products are the main export goods with a share of around 30%.
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Trade Structure and Trade Liberalization: The emerging pattern between the EU and Transition Economies
Hubert Gabrisch, Maria Luigia Segnana
MOCT-MOST 11,
2001
Abstract
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