Trade Specialisation and Economic Convergence: Evidence from Two Eastern European Countries

Posted: 9 Jul 2009

See all articles by Guglielmo Maria Caporale

Guglielmo Maria Caporale

Brunel University London - Department of Economics and Finance; London South Bank University; CESifo (Center for Economic Studies and Ifo Institute); German Institute for Economic Research (DIW Berlin)

Christophe Rault

IZA Institute of Labor Economics; University of Orleans; CESifo (Center for Economic Studies and Ifo Institute)

Robert Sova

Academy of Economic Studies; Université Paris I Panthéon-Sorbonne - Centre Maison des Sciences Economiques

Anamaria Sova

Bucharest Academy of Economic Studies; CES Sorbonne University

Multiple version iconThere are 2 versions of this paper

Date Written: April 2009

Abstract

This paper analyses trade specialisation dynamics in two Eastern European countries (Romania and Bulgaria - EEC-2) vis-a-vis the core EU member states (EU-15) over the period 1990-2006. Specifically, we focus on whether there is a shift towards intra-industry trade leading to economic convergence and technological catch-up. We use recently developed static (FEM, REM and FEVD) and dynamic (GMM) panel data methods which take into account possible heterogeneity. Our empirical results indicate that intra-industry trade has indeed increased, but it is of the vertical rather than the horizontal type, resulting in complementary rather than competitive production patterns.

Keywords: Gravity models, panel data models, trade specialisation, comparative advantage

JEL Classification: F13, F15, C23

Suggested Citation

Caporale, Guglielmo Maria and Rault, Christophe and Rault, Christophe and Sova, Robert and Sova, Anamaria and Sova, Anamaria, Trade Specialisation and Economic Convergence: Evidence from Two Eastern European Countries (April 2009). DIW Berlin Discussion Paper No. 875, Available at SSRN: https://ssrn.com/abstract=1431447 or http://dx.doi.org/10.2139/ssrn.1431447

Guglielmo Maria Caporale (Contact Author)

Brunel University London - Department of Economics and Finance ( email )

Kingston Lane
Marie Jahoda Building
Uxbridge, Middlesex UB8 3PH
United Kingdom
+44 1895 266713 (Phone)
+44 1895 269770 (Fax)

HOME PAGE: http://www.brunel.ac.uk/about/acad/bbs/bbsstaff/ef_staff/guglielmocaporale/

London South Bank University ( email )

Centre for Monetary and Financial Economics
London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Christophe Rault

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

University of Orleans ( email )

Rue de Blois
BP 6739
LEO, Orleans, Orleans cedex 2 45067
France

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Robert Sova

Academy of Economic Studies ( email )

6 Piata Romana, 1-st District, PO 22
Bucharest, 010374
Romania

HOME PAGE: http://www.cig.ase.ro

Université Paris I Panthéon-Sorbonne - Centre Maison des Sciences Economiques

106/112 boulevard de l'Hopital
Paris Cedex 13, 75647
France

Anamaria Sova

Bucharest Academy of Economic Studies

6, Romana Square, District 1
Bucharest, 010374
Romania

CES Sorbonne University ( email )

106-112 bd. de l'Hopital, 75647, Paris, cedex 13
Paris
France

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
89
Abstract Views
895
Rank
345,247
PlumX Metrics