Aleksandra Kordalska

GROSS EXPORTS VERSUS VALUE ADDED EXPORTS: DETERMINANTS AND POLICY IMPLICATIONS FOR MANUFACTURING SECTORS IN SELECTED CEE COUNTRIES

This article assesses the impact of selected determinants on both value-added exports and gross exports for seven CEE economies, based on thirteen manufacturing subsectors for the years 1995–2011. The results show a decrease in domestic value-added, especially in high-tech industries. The impact of the determinants, except for vertical specialization, is similar for exports in value-added and in gross terms. The results indicate that labor productivity and highly skilled employees have a greater impact on generating domestic value-added. CEE countries do not achieve comparative advantages of a capital-intensive nature. Manufacturing does not serve a “carrier function” for services.

Global Competitiveness and Economic Growth: A One-Way or Two-Way Relationship?

The Global Competitiveness Index is treated as a standard to measure the competitiveness of countries. Leaders look at it to make policy and resource allocation decisions, because global competitiveness is expected to be related to economic growth. However, studies which analyze the empirical relationship between these two economic categories are very rare. It is still an open question in the literature whether economic growth can be used to predict future global competitiveness or the other way round. This paper empirically tests the relationship between the GCI and the economic growth rate by using a panel Granger causality analysis based on annual data for 114 countries divided into five groups by income criteria and covering the period 2006-2014. We confirm a strong unidirectional causality among the countries analyzed, i.e. GDP growth causes global competitiveness. Additionally, we find that the GCI is successful in predicting economic growth for the majority low income and OCED high income counties, but among the middle income countries this relationship exists only for large economies such as China and India.

CEE Trade in Services: Value-Added Versus Gross Terms Approaches

This article assesses the impact of the determinants of service exports in both value-added terms and gross terms for seven Central Eastern European economies in 1995–2011. The results confirm the importance of increasing labor productivity and highly skilled and medium-skilled workers in the growth of trade in services. Exports of services are also supported by linkages between domestic services, especially business services, and the manufacturing sector. The results show that the impacts of the determinants are fairly similar when exports are measured in value-added or gross terms; however, the strength of the impact differs across the countries analyzed.

Determinants of Net Exports in Polish and Czech Manufacturing: A Sectoral Approach with Error Correction Model

Growth model in CEE countries has based on a massive inflow of direct foreign investments, especially in manufacturing, from the onset of the transformation. This resulted in a substantial share of manufacturing goods in total exports and a high ranking position of some CEE countries among the most industrialized economies in the world. The main objective of this paper is to compare the determinants of the international competitiveness, measured by the net exports of the manufacturing sectors in the Czech and Polish economies, by using the database of 13 manufacturing sub-sectors in 1995-2011. The authors research the question of how much foreign and domestic demand, the level of labour costs, the level of sector innovation intensity, the level of sector openness to foreign markets as well as sectoral labour productivity influence the changes in trade balance. Our approach is based on employing an error correction model and SURE model to disaggregated sectoral manufacturing data. The results of the analysis conducted show substantial differences in the roles particular variables play in explaining the net exports in individual sectors. For the majority of Polish and Czech manufacturing sub-sectors, generation of positive trade balance is determined by relative demand growth. An increasing labour productivity influences heavily a positive trade balance of Polish goods in majority of sub-sectors, however, a key factor in Czech sub-sectors is decreasing unit labour costs. The results of the analysis indicate mostly a greater impact of the researched factors on net exports in long rather than short term and the better capacity of the Czech economy to correct deviations from the equilibrium.

Gross Exports versus Value Added Exports: Determinants and Policy Implications for Manufacturing Sectors in Selected CEE Countries

The main objective of this paper is to assess the impact of selected determinants on both exports in value added and exports in gross terms for seven CEE economies, based on 13 manufacturing subsectors and for the period 1995-2011. The results of the analysis show a substantial decrease in domestic value added in a majority of the countries, especially in medium-high- and high-tech industries. For the seven CEE countries the impact of the main determinants (except vertical specialisation) are fairly similar when exports are measured in value added or in gross terms. The results indicate a greater impact of labour productivity and highly skilled employees on generating domestic value added in the manufacturing sector. CEE countries do not achieve comparative advantages of a capital-intensive nature in exports of manufactured products. Additionally, manufacturing in CEE countries does not serve a ‘carrier function’ for services to contribute to a country’s export performance.

Impact Of The Manufacturing Sector On The Export Competitiveness Of European Countries - A Spatial Panel Analysis

Abstract The purpose of this paper is to determine how changes in the export competitiveness of the EU economy (measured by exports and net exports) depend on changes in the competitiveness of processing industries, on the basis of manufacturing data from 19 EU countries over years 1995-2009 and using a spatial panel data model. The determinants of export competitiveness are selected in the light of predictions from international trade theory, growth theory and the theory of innovation. In particular, the paper explores how the size of foreign demand, the value of domestic demand, the level of ULC in the sector, the degree of openness of the sector to foreign markets, labour productivity and intermediate consumption in a sector affect the export competitiveness of the European economies selected. The results from spatial data models lead to a conclusion about the statistical significance of spatial dependencies in export competitiveness modelling. The analysis indicates the different determinants of export competitiveness, both if it is measured by export value and if it measured by net exports. The authors hope that the results will be a voice in the discussion on enhancing the competitiveness of European industrial sectors