We analyze the relationship between Central and Eastern European country (CEEC) industry-level competitiveness and technological catching up induced by economic integration with EU economies. A theoretical dynamical setup is developed in which highskill firms gain market share in “quality dominated” markets, whereas low-skill firms face price competition for their exports. We run econometric estimations for bilateral trade between CEEC and EU economies over 2000–2007. We first test the assumption that the unit value ratio is a good proxy for quality in trade and then use the fitted unit value ratio to estimate the role of preference for quality in CEEC market share changes. Estimations support the results of the theoretical model.
Technological catching up, quality of exports and competitiveness: a sectoral perspective
MULINO, MARCELLA;
2013-01-01
Abstract
We analyze the relationship between Central and Eastern European country (CEEC) industry-level competitiveness and technological catching up induced by economic integration with EU economies. A theoretical dynamical setup is developed in which highskill firms gain market share in “quality dominated” markets, whereas low-skill firms face price competition for their exports. We run econometric estimations for bilateral trade between CEEC and EU economies over 2000–2007. We first test the assumption that the unit value ratio is a good proxy for quality in trade and then use the fitted unit value ratio to estimate the role of preference for quality in CEEC market share changes. Estimations support the results of the theoretical model.Pubblicazioni consigliate
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