IMF Working Papers Volume 1998 Issue 150: European Trade and Foreign Direct Investment U-Shaping Industrial Output in Central and Eastern Europe: Theory and Evidence (1998)

European Trade and Foreign Direct Investment U-Shaping Industrial Output in Central and Eastern Europe: Theory and Evidence

Author:

Mr. Patrick P. Walsh

Mr. Patrick P. Walshnull

Search for other papers by Mr. Patrick P. Walsh in
Current site
Google Scholar
PubMed

and

Mr. Alexander Repkine

Mr. Alexander Repkinenull

Search for other papers by Mr. Alexander Repkine in
Current site
Google Scholar
PubMed

Series:: IMF Working Papers

Volume/Issue:: Volume 1998: Issue 150

Publication Date:: 01 Oct 1998

DOI:: https://doi.org/10.5089/9781451923278.001

ISBN:: 9781451923278

ISSN:: 1018-5941

Pages:: 34

Keywords:: WP; rate of return; Foreign Direct Investment; Industrial Output Growth; Transition Economies; Cross-Country and Branches of Industry Regressions; EU export; EU product; EU trade shock; EU market; EU foreign direct investment; EU investor; Exports; Industrial sector; Trade liberalization; Production growth; Central and Eastern Europe

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Series:: IMF Working Papers

Volume/Issue:: Volume 1998: Issue 150

Language:: English

Publication Date:: 01 Oct 1998

DOI:: https://doi.org/10.5089/9781451923278.001

ISBN:: 9781451923278

ISSN:: 1018-5941

Pages:: 34

Keywords:: WP; rate of return; Foreign Direct Investment; Industrial Output Growth; Transition Economies; Cross-Country and Branches of Industry Regressions; EU export; EU product; EU trade shock; EU market; EU foreign direct investment; EU investor; Exports; Industrial sector; Trade liberalization; Production growth; Central and Eastern Europe

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Download PDF (1 MB) Download Epub

We examine industrial output in Bulgaria, Hungary, Poland, and Romania during 1989–95 in terms of pretransitional product trade orientation. The growth of EU-oriented output within sectors of industry, ex-post trade, and market liberalization, is modeled as foreign direct investment induced Schumpeterian (vertical) waves of product innovation. The growth of non-EU-oriented output within sectors is modeled as unobservable deterministic heterogeneity. The results indicate that the gap observed in industrial output performance when comparing Eastern European to former Soviet countries is mainly explained by the inherited presence of EU-oriented production and its unconstrained growth over the transition period.

Save
Email this content

Share Link

Copy this link, or click below to email it to a friend
Email this content
or copy the link directly:

https://www.elibrary.imf.org/view/journals/001/1998/150/001.1998.issue-150-en.xml
The link was not copied. Your current browser may not support copying via this button.

Link copied successfully

Collapse
Expand

IMF Working Papers

ISSN:: 1018-5941

Publisher:: International Monetary Fund

Topics

Countries

Series

About

Resources

Share Link

Metrics

Foresee