Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121047
Authors: 
Wacker, Konstantin
Year of Publication: 
2010
Series/Report no.: 
FIW Working Paper 47
Abstract: 
I use the STAN database of the OECD and different econometric methods to investigate the effects of exports towards the EU-15 on wages in the Visegrad countries (CEEC-4; Czech Republic, Hungary, Poland, and Slovakia). The results do not allow to draw any definite statements about this effect. While the impact of exports towards the EU-15 on wages in the countries investigated is likely to be negative in the short run (1-2 years), it seems to be positive in the medium and long run, at least for Hungary and Poland. Nevertheless, it is clear that the pattern of the CEEC-4 exports towards the EU-15 does not correspond with the predictions of the Heckscher-Ohlin model. Therefore, also the theorems of Stolper and Samuelson (1941) and concerning the equalization of factor prices, which are based on the Heckscher-Ohlin model, do not seem accurate to describe the underlying forces linking trade with factor prices. I argue that missing regional and related inter-sectoral labor mobility might be a potential factor preventing employees from taking advantage of trade liberalization. To substantiate this suspicion, however, analysis of more disaggregated data is necessary.
Subjects: 
panel data
EU enlargement
trade
wages
factor prices
income distribution
Central and Eastern Europe
Visegrad Countries
JEL: 
C23
F14
F15
F16
Document Type: 
Working Paper

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