Evolution of Comparative Advantages in Central and Eastern European Countries following EU Accession
DOI:
https://doi.org/10.18778/2082-4440.48.03Keywords:
Lafay Index, unit value, international trade, comparative advantages, Central and Eastern EuropeAbstract
The article presents the results of an analysis of the comparative advantages of each of the ten countries that joined the European Union (EU) in 2004 and 2007 (excluding Cyprus and Malta) in trade in goods with the countries of the European Economic Area and Switzerland (EEA) in 2007 and 2019. Changes in comparative advantages determined by the Lafay index in individual product categories at the lowest level of aggregation of the Harmonized System classification have been analysed, as well as the shifts in these advantages between low- and high-quality goods, according to their unit value. International trade in goods data from the WITS-COMTRADE database were used. The paper shows a rise in the number of high-quality comparative advantages in most of the analysed countries and an increasing share of high-quality advantages in the overall comparative advantages of these countries. This indicates that the new EU member states have gained the capability to produce goods that are more competitive in the EEA market in the period after accession. The analysis of changes in comparative advantages across product sections shows that most of the new EU member states are losing comparative advantages in the textile industry and gaining advantages in the machinery and precision industries.
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