Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/29734 
Year of Publication: 
2009
Series/Report no.: 
DIW Discussion Papers No. 875
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This paper analyses trade specialisation dynamics in two Eastern European countries (Romania and Bulgaria - EEC-2) vis-à-vis the core EU member states (EU-15) over the period 1990-2006. Specifically, we focus on whether there is a shift towards intra-industry trade leading to economic convergence and technological catch-up. We use recently developed static (FEM, REM and FEVD) and dynamic (GMM) panel data methods which take into account possible heterogeneity. Our empirical results indicate that intra-industry trade has indeed increased, but it is of the vertical rather than the horizontal type, resulting in complementary rather than competitive production patterns.
Subjects: 
Gravity models
panel data models
trade specialisation
comparative advantage
JEL: 
F13
F15
C23
Document Type: 
Working Paper

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