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The Structure and determinants of East-West trade: a preliminary analysis of the manufacturing sector

Author: Neven, Damien J. ; Röller, Lars-HendrikINSEAD Area: Economics and Political Science Series: Working Paper ; 90/56/EPS Publisher: Fontainebleau : INSEAD, 1990.Language: EnglishDescription: 27 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: This paper tries to identify the comparative advantage of Eastern European countries and thereby characterise the trade that will take place between Eastern and Western Europe. The paper proceeds by analysing the factor content of the actual trade between Eastern and Western Europe, which should "reveal" such comparative advantage. Whether a conflict can arise for Southern EC members between the implementation of the 1992 programme and trade liberalisation with the East, will depend on the relative labour endowment and comparative advantage of Eastern Europe. The analysis of the comparative advantage revealed in East-West trade will thus shed some light on the issue of whether the 1992 programme could be jeopardized by East-West trade liberalisation
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This paper tries to identify the comparative advantage of Eastern European countries and thereby characterise the trade that will take place between Eastern and Western Europe. The paper proceeds by analysing the factor content of the actual trade between Eastern and Western Europe, which should "reveal" such comparative advantage. Whether a conflict can arise for Southern EC members between the implementation of the 1992 programme and trade liberalisation with the East, will depend on the relative labour endowment and comparative advantage of Eastern Europe. The analysis of the comparative advantage revealed in East-West trade will thus shed some light on the issue of whether the 1992 programme could be jeopardized by East-West trade liberalisation

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