The dynamics of trade specialization and exportations in central and eastern European countries

To investigate the impact of trade specialization on exports in eight central and eastern European countries from 1994 to 2008, a dynamic method based on "revealed comparative advantages" is used. Russia and Ukraine have increased their specialization in raw materials, while Bulgaria, Hungary, Poland, Romania, Slovakia and the Czech Republic have developed new comparative advantages, mainly in the automobile industry. A constant market share analysis shows that the exportations of Russia and Ukraine are, since 2000, entirely due to trade specialization whereas, in the six other countries, the performance in terms of exports mainly results from their external competitiveness, even though specialization is also a positive factor.