Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70234
Authors: 
Martínez-Zarzoso, Inmaculada
Voicu, Anca M.
Vidovic, Martina
Year of Publication: 
2011
Series/Report no.: 
Discussion Papers, Center for European Governance and Economic Development Research 125
Abstract: 
This paper examines the involvement of the CEECs into regional and global production networks over the period 1999 to 2009. We employ a theoretically justified gravity model which incorporates the extensive margin of trade and accounts for firm heterogeneity. We first estimate the model for highly disaggregated exports (SITC 5-digits) in final goods, and then augment it by including the corresponding imported intermediate products from the OECD together with the usual control variables. Next, we estimate the model for each trade margin (extensive and intensive) separately to evaluate the effects of economic integration on exports and imports of each category of goods. Our results indicate that the CEECs have indeed become more integrated into regional production networks and this has had a positive impact in terms of increasing trade volumes and trade varieties between the two parts of the European continent.
Subjects: 
exports
gravity equation
panel data
production networks
economic integration
trade flows
JEL: 
F10
F14
D31
Document Type: 
Working Paper

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