Prague Economic Papers 2003, 12(1):19-36 | DOI: 10.18267/j.pep.204

Restructuring of manufacturing industry in the central and east european countries

Peter Havlik
The Vienna Institute for International Economic Studies (WIIW), 1010 Vienna, Oppolzergasse 6, Austria.

This paper analyses various aspects of industrial restructuring across all ten Central and East European (CEE) candidate countries for EU membership during the last decade and provides also some comparisons with current EU Member States. The impressive structural adjustments that have taken place in CEE industries since the beginning of transition brought the structure of manufacturing industry in the majority of CEE candidate countries fairly close to the European pattern both in terms of production and employment. Technology-driven industries account for a growing share of exports in nearly all candidate countries, while labour-intensive industries have growing export shares only in less advanced candidates such as Bulgaria, Romania and in the Baltic states. The initial export specialization pattern of the more advanced CEE candidate countries has thus nearly completely reversed; a remarkable upgrading towards more sophisticated and less capital-intensive industries has occurred.

Keywords: foreign direct investment, EU candidate countries, industrial restructuring, trade specialization, integration
JEL classification: F14, F15, L6, P52

Published: January 1, 2003  Show citation

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Havlik, P. (2003). Restructuring of manufacturing industry in the central and east european countries. Prague Economic Papers12(1), 19-36. doi: 10.18267/j.pep.204
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