European trade and foreign direct investment u-shaping industrial output in Central and Eastern Europe : theory and evidence

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Show simple item record Repkine, Alexander Walsh, Patrick P. 2009-03-31T16:19:43Z 2009-03-31T16:19:43Z LICOS Centre for Transition Economics, 1998 en 1998
dc.description.abstract We examine the evolution of industrial output in Bulgaria, Hungary, Poland and Romania over the period 1989-1995 in terms of product trade orientation prior to the transition process, some products traded in a market economy while others traded in the artificial market of the Soviet Bloc. We theoretically and empirically model the growth dynamics of EU oriented output within sectors of industry, ex-post trade and market liberalisation, as Foreign Direct Investment (FDI) induced Schumpeterian (vertical) waves of product innovation. We estimate the growth dynamics of non-EU oriented output within sectors as unobservable deterministic sector and country specific heterogeneity. The results indicate that the evolution of industrial production within sectors that were EU oriented prior to transition grew with increasing convexity over time. This growth was unconstrained by the transition process due to increased access to the European market, foreign capital and foreign expertise. Pre-transition non-EU industrial production is estimated to follow the same pattern as that observed in CIS countries. Hence the faster recovery, or the U-Shape industrial output, observed in CEE as compared with CIS countries is mainly explained by the inherited presence of EU oriented production and its unconstrained growth over the transition period. en
dc.description.sponsorship Marie Curie Research Training Grant, RB4001GT965163 en
dc.format.extent 4304 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher LICOS Centre for Transition Economics en
dc.relation.ispartofseries LICOS Discussion Paper en
dc.relation.ispartofseries 73/1998 en
dc.subject Foreign direct investment en
dc.subject Industrial output growth en
dc.subject Transition economies en
dc.subject Cross-Country and branches of industry regressions en
dc.subject.classification F43 en
dc.subject.classification O33 en
dc.subject.classification P23 en
dc.subject.lcsh Investments, Foreign--Europe en
dc.subject.lcsh Industrial productivity--Europe en
dc.subject.lcsh Former communist countries--Economic conditions en
dc.title European trade and foreign direct investment u-shaping industrial output in Central and Eastern Europe : theory and evidence en
dc.type Working Paper en
dc.internal.authorurl Patrick P. Walsh (web page) en
dc.internal.authorurl en
dc.internal.authorid UCD0027 en
dc.internal.availability Full text available en
dc.internal.webversions en
dc.status Not peer reviewed en
dc.neeo.contributor Repkine|Alexander|aut|
dc.neeo.contributor Walsh|Patrick P.|aut|UCD0027

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