New goods margin in international trade: empirical analysis for Visegrad countries
| Authors | |
|---|---|
| Year of publication | 2010 |
| Type | Article in Proceedings |
| Conference | Challenges for Analysis of the Economy, the Businesses, and Social Progress |
| MU Faculty or unit | |
| Citation | |
| Web | http://www.e-doc.hu/index.php?eb=53 |
| Field | Economy |
| Keywords | international trade;trade barriers; liberalization; export growth; intensive and extensive margin; Visegrad countries |
| Description | This paper deals with empirical analysis of international trade between Visegrad countries and EU-15 dur-ing past two decades. The goal of the paper is to find out if the growth in export is of intensive or extensive type. I follow methodology of Kehoe and Ruhl (2002) and use detailed trade statistics on the value of trade flows by commodity according to Standard International Trade Classification (SITC) codes. I find out that the goods that were traded the least in the benchmark year account for disproportionate share in trade after liberalization and reduction of trade barriers. The most significant increase was found for Poland and the Czech Republic. The set of goods which accounted for only ten percent of trade in 1993 accounts for nearly thirty percent of trade following the liberalization. Similar patterns were identified also for Hungary and Slovakia even it the analyzed period was shorter. The countries thus began to export goods that they had not been previously trading. |
| Related projects: |