Intra-industry Trade as a Measure of Specialisation Changes in the EU-10 Countries in 1995-2014

• Autorzy: Elżbieta Kawecka-Wyrzykowska
• Języki publikacji: EN

Abstrakty

EN

In this paper we identify trade specialisation changes in the 10 Central and Eastern European countries which joined the European Union after 2004 (EU-10, without Croatia). We measure those changes using indices of the intra-industry trade (IIT), i.e. is of simultaneous exports and imports of products belonging to the same industry. We conclude that the pattern of inter-industry trade based on comparative advantages is still dominating in the EU-10, but its role has been decreasing. At the same time, almost all the EU-10 countries recorded a significant rise in the proportion of high quality vertically differentiated products, thus showing the improved competitiveness of their exports. According to the theory, such type of specialisation is based on factors such as human capital and R&D. We also identified the increasing role of IIT in horizontally differentiated products trade (i.e. simultaneous exports and imports of products of similar quality and technology) in the EU-10, typical for more developed countries and reflecting income convergence. This paper extends earlier studies by using more recent data and a long period for comparison of IIT developments (20 years) and by covering all 10 Central and Eastern European countries which joined the EU.(original abstract)

Słowa kluczowe

EN

Foreign investment; Intra-industry trade; Foreign trade

PL

Inwestycje zagraniczne; Handel wewnątrzgałęziowy; Handel zagraniczny

• Czasopismo: Studia Europejskie / Centrum Europejskie Uniwersytetu Warszawskiego
• Rocznik: 2017
• Numer: nr 3
• Strony: 117--135

Twórcy

autor

Elżbieta Kawecka-Wyrzykowska

• Szkoła Główna Handlowa w Warszawie

Bibliografia

• Ambroziak Ł., The foreign direct investments (FDI) as a factor of intra-industry trade development in the EU New Member States, mimeo, ETSG conference, Lausanne 2010.
• Ambroziak Ł., FDI and intra-industry trade: theory and empirical evidence from the Visegrad Countries, "International Journal of Economics and Business Research", vol. 4, no. 1-2/2012.
• Aturupane C., Djankov S., Hoekman B., Horizontal and vertical intra- industry trade between Eastern Europe and the European Union, "Weltwirtschaftliches Archiv", vol. 135, no. 1/1999.
• Balassa B., Tariff reductions and Trade in Manufactures Among Industrial Countries, "American Economic Review", vol. 56, no. 3/1966.
• Caetano J. and Galego A., In Search for the Determinants of Intra-Industry trade within an enlarged Europe, "South-Eastern Europe Journal of Economics", no. 2/2007.
• Cieślik A., Multinational fi rms and international fragmentation of production in Poland, "Working Papers of International Business", no. 25/2008.
• Dautovic E., Orszaghova L., Schudel W., Intra-Industry Trade Between CESEE Countries and the EU 15, "Working Paper Series, European Central Bank", no. 1719/2014.
• Dreze J., Lex exportation intra-C.E.E. en 1958 et la position Belge, "Recherches Economiques de Louvain", vol. 27/1961.
• Falvey R., Commercial policy and intra- industry trade, "Journal of International Economics", vol. 11, no. 4/1981.
• Falvey R., Kierzkowski H., Product Quality, Intra-Industry Trade and (Im) Perfect Competition, in: Protection and Competition in International Trade, ed. H. Kierzkowski, Blackwell, Oxford 1987.
• Faustino H., Leitao N., Intra-industry trade and labor costs: The smooth adjustment hypothesis, "Working Papers", no. 17/2009.
• Fidrmuc J., Djablik M., Intra-industry Trade Between the EU and the CEECs - The Importance of FDI in Trade Structure, East-West Conference, Austrian National Bank, 2003.
• Flam H., Helpman E., Vertical Product Differentiation and North-South Trade, "American Economic Review", vol. 76, no. 5/1987.
• Fontagne L., Freudenberg M., Intra-Industry Trade: Methodological Issues Reconsidered, "CEPII Working Papers", no. 1/1997.
• Gacs J., The Economic Interpenetration between the EC and Eastern Europe: Hungary, "European Economy", no. 6/1994.
• Greenaway D., Hine R., Milner C., Elliot R., Adjustment and the Measurement of Marginal Intra-Industry Trade, "Weltwirtschafl iches Archiv", vol. 130, no. 3/1994.
• Grubel H.G., Lloyd P.J., Intra-Industry Trade: The Theory and the Measurement of International Trade in Differentiated Products, Macmillan, London 1975.
• Helpman E., International trade in the presence of product differentiation, economies of scale and monopolistic competition: A Chamberlin-Hecksher-Ohlin approach, "Journal of International Economics", vol. 11, no. 3/1981.
• Hoekman B., Djankov S., Intra-Industry Trade, Foreign Direct Investment, and the Reorientation of Eastern European Exports, "Policy Research Working Paper", no. 1652/1996.
• Kaminski B., How Accession to the European Union has Affected External Trade and Foreign Direct Investment in Central European Countries, "Policy Research Working Paper", no. 2578/2001.
• Kawecka-Wyrzykowska E., Evolving pattern of foreign trade specialization of the New Member States of the EU: The case of automotive industry, in: Five Years of an Enlarged EU. A Positive Sum Game, eds. F. Keereman, I. Szekely, Springer Verlag, Berlin 2009.
• Kawecka-Wyrzykowska E., Evolving pattern of intra-industry trade specialization of the Visegrad countries, in: Five years of the EU Eastward Enlargement - Effects on Visegrad Countries: Lessons for the Future, ed. E. Kawecka-Wyrzykowska, Warsaw School of Economics, Warsaw 2009.
• Krugman P.R., Increasing Returns, Monopolistic Competition, and International Trade, "Journal of International Economics", no. 9/1979.
• Krugman P.R., Scale Economies, Product differentiation, and the Pattern of Trade, "American Economic Review", no. 70/1980.
• Lancaster K., Intra-industry trade under perfect monopolistic competition, "Journal of International Economics", vol. 10, no. 2/1980.
• Molendowski E., The Visegrad Group Countries - changes in intra-industry competitiveness of their economies during the world financial and economic crisis, "Procedia - Social and Behavioral Sciences", vol. 110/2014.
• Molendowski E., Polan W., Changes in Intra-industry Competitiveness of the New Member States (EU-10) Economies During the Crisis, the Years 2009- 2011, "Comparative Economic Research", vol. 16, no. 3/2013.
• Poland's 10 years in the European Union 2014, Ministry of Foreign Affairs, Warsaw 2014.
• Richter S., Comments on Chapter 2 and 3, in: Five Years of an Enlarged EU. A Positive Sum Game, eds. F. Keereman, I. Szekely, Springer Verlag, Berlin 2009.
• Ruffin R.J., The Nature and Significance of Intra-industry Trade, "Economic and Financial Review", 4th Quarter/1999.
• Toporowski P., The impact of global economic crisis on the intra-industry trade of Visegrad Group Countries and the EU-15, "International Journal of Management and Economics", no. 33/2012.
• Verdoorn P.J., The Intra-Block Trade of Benelux, in: Economic Consequences of the Size of Nations, ed. E.A.G. Robinson, Macmillan, London 1960.