EconStor >
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin >
DIW-Diskussionspapiere >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/18208
  
Title:Volume and comparative advantage in East-West trade PDF Logo
Authors:Trübswetter, Parvati
Schumacher, Dieter
Issue Date:2000
Series/Report no.:DIW-Diskussionspapiere 223
Abstract:The volume and commodity structure of EU trade with the transition countries in central and eastern Europe (CEECs) is estimated on the assumption that it will follow the pattern of trade among market economies. A gravity-type approach at the level of product groups is used, combining geography and factor-proportions theory of international trade. It is shown that there is still considerable potential for a further rise in East-West trade if the CEECs? national product is valued at purchasing power parities, instead of market exchange rates. Considering divergent income levels and distance between East and West, the EU?s comparative advantages are in specialised-supplier, scale-intensive and science-based goods, whereas the CEECs? comparative advantages are in labour-intensive and resource-intensive goods. The intersectoral specialisation pattern will become "flatter" and the share of intra-industry trade will grow when the income differentials decrease.
Subjects:East-West trade
gravity model
comparative advantages
JEL:F10
F17
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

Files in This Item:
File Description SizeFormat
dp223.pdf338.93 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/18208

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.