Trade Specialization in the Enlarged European Union

By: Dora BorbÃ©ly

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Paperback | 18 July 2006

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Economic integration in general and Eastern enlargement of the European Union in particular created a wider European single market, thereby stimulating structural adjustment and economic specialization. This study analyzes trade specialization patterns in the enlarged European Union with a special focus on the new EU member states and the cohesion countries. From a sectoral trade point of view, empirical findings on revealed comparative advantage and a broader picture of competitiveness on the single market are presented. Furthermore, we analyze whether trade specialization patterns converge within the enlarged EU. Empirically identifying the determinants of successful trade specialization and taking into account the role of foreign direct investment, we offer new insights into the dynamics of trade, innovation and integration. Finally, policy options for the new EU member states are evaluated. Thus this work increases our understanding of the nature of international adjustment processes.

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Introduction	p. 1
Economic Development and Trade in the Enlarged European Union	p. 5
Integration Processes and Economic Development within the Enlarged European Union	p. 5
Trade and Production in the Enlarged European Union	p. 13
Facts and Figures on Trade	p. 13
The Link Between Trade and Production	p. 19
Trade Policy in the Enlarged European Union	p. 28
International Trade Theory and Its Empirical Application	p. 31
Traditional Trade Theory	p. 33
Overview	p. 33
Heckscher-Ohlin-Vanek Model	p. 36
Testing the HOV Model	p. 43
The Role of Intermediate Inputs	p. 45
The Extended Model of Intermediate Inputs	p. 45
Empirical Evidence on the Role of Intermediate Inputs	p. 48
New Trade Theory	p. 52
The Monopolistic Competition Model	p. 52
Gravity Models	p. 56
Empirical Evidence on Gravity Models	p. 57
New Economic Geography	p. 60
The NEG Models	p. 60
Empirical Evidence on the New Economic Geography	p. 69
The Relevance of the Main Theories for the New EU Member States	p. 73
Analyzing Intra-EU Trade Specialization in Manufacturing	p. 77
Imitation and Innovation in Manufacturing	p. 77
The Importance of Research and Development	p. 77
Other Factors Influencing Innovation	p. 82
Taxonomy: Analytical Sector Classification	p. 83
Traditional Taxonomy	p. 83
Pavitt Taxonomy	p. 83
OECD Taxonomy	p. 84
Measures of Intra-EU Trade	p. 86
The Role of Exports and Imports: Trade Coverage Index	p. 86
The Role of Intra-Industry Trade: Grubel-Lloyd Index	p. 92
The Role of Comparative Advantages: RCA-Balassa	p. 98
Competition Among New EU and Cohesion Countries	p. 110
Labor Intensive Industries	p. 112
Resource Intensive Industries	p. 116
Scale Intensive Industries	p. 120
Science-Based Industries	p. 124
Differentiated Goods	p. 126
Do Intra-EU Trade Patterns Converge?	p. 130
Methodology	p. 131
Country-Wise Export Specialization Patterns	p. 135
Sector-Wise Export Concentration Patterns	p. 139
Determinants of Export Specialization in New EU Member States: A Dynamic Panel Analysis	p. 151
The Data	p. 152
The Methodology of the Dynamic Panel Estimation	p. 153
Estimation Results	p. 158
Summary of the Results	p. 176
Policy Implications	p. 179
Competition Policy	p. 182
Trade Policy	p. 183
Industrial Policy	p. 184
Structural and Cohesion Policy	p. 185
Conclusions	p. 187
A Nace Rev. 1.1 Classification	p. 191
List of Figures	p. 195
List of Tables	p. 199
References	p. 203
Index	p. 213
Table of Contents provided by Ingram. All Rights Reserved.

Trade Specialization in the Enlarged European Union

At a Glance

Paperback

Shipping

How to return your order

Defective items

You Can Find This Book In

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