Opening Up and Geographic Diversification of Trade in Transition Economies

Author/Editor:

Oleh Havrylyshyn ; Hassan Al-Atrash

Publication Date:

February 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper looks at the progress in transition and the geographic diversification of trade, focusing on two issues--the degree of trade openness and trade integration--for a sample of countries in transition. It concludes that about half of the group of countries sampled are becoming as open as similar market economies, but that many others remain relatively closed. Geographic diversification (to the European Union) is found to be greater the closer is geographic proximity and the more advanced the country is with reforms. The analysis is then extended, in an illustrative way, to show how much larger would be the share of exports to the EU if structural reforms were more ambitious.

Series:

Working Paper No. 1998/022

Subject:

Econometric analysis Exchange rates Exports Foreign exchange Gravity models International trade Real effective exchange rates Trade balance

English

Publication Date:

February 1, 1998

ISBN/ISSN:

9781451921267/1018-5941

Stock No:

WPIEA0221998

Pages:

27

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