Are the Trade Opennes and Competitiveness of Transition Economies Drivers for Economic Growth and Convergence or Not

5th International Conference «Economic Integration, competition and cooperation», Croatia, Opatija, 2005.

14 Pages Posted: 27 Mar 2013 Last revised: 4 May 2013

See all articles by Dragoljub Stojanov

Dragoljub Stojanov

University of Rijeka - Faculty of Economics

Vinko Kandžija

University of Rijeka - Faculty of Economics

Date Written: March 25, 2013

Abstract

In this paper we wish to suggest that: "obsession" with competitiveness and trade openness, together with "hands off" type of economic policy, may hardly lead a country towards "real income" convergence on her long-run development path. Moreover, such an obsession may have deflationary impact upon an economy defined as "factor-driven economy"), let alone on an "aid-driven economy".

The first part of the paper is an attempt to make an insight into deliberation of the leading economists on the issue. The second part of this paper is devoted to the XIX experience of LDC's development path, and Japan’s since the Second World war. Concluding remarks suggest growth-led export, instead of mainstream dogma of export-lead growth, as a more convenient development paradigm on the way to both: real and overall convergence between CEECs and EU.

Keywords: openness, competitiveness, convergence, policy, lessons

Suggested Citation

Stojanov, Dragoljub and Kandžija, Vinko, Are the Trade Opennes and Competitiveness of Transition Economies Drivers for Economic Growth and Convergence or Not (March 25, 2013). 5th International Conference «Economic Integration, competition and cooperation», Croatia, Opatija, 2005., Available at SSRN: https://ssrn.com/abstract=2239128 or http://dx.doi.org/10.2139/ssrn.2239128

Dragoljub Stojanov

University of Rijeka - Faculty of Economics ( email )

Ivana Filipovića 4
Rijeka, 51000
Croatia

Vinko Kandžija (Contact Author)

University of Rijeka - Faculty of Economics ( email )

Ivana Filipovića 4
Rijeka, 51000
Croatia

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