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Is Germany a Hub of ‘Factory Europe’ for CEE Countries?

Abstract

The goal of the paper is to decompose gross exports and imports to/from Germany for seven selected economies in Central and Eastern Europe (CEE): the Czech Republic, Estonia, Hungary, Lithuania, Latvia, Poland and Slovakia for 2000 and 2014, in order to identify the role of Germany in absorbing, reflecting and redirecting CEE trade. The authors use a gross trade decomposition proposed by Bonin and Mancini (2017), which is the extended version of the methodology of Koopman et al. (2014). The analysis shows a deep integration of CEE into ‘Factory Germany’ as the European industrial centre and a smaller role of Germany as a market of final destination. Germany plays an increasing role in the redirection of CEE exports to extra-European destinations, especially to the USA, China, and Russia. Additionally, it is found that the Baltic countries and Poland export domestic value added mostly included in services, while the Visegrád countries do so in manufacturing.

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Category:
Articles
Type:
artykuły w czasopismach
Published in:
Ekonomista pages 734 - 759,
ISSN: 0013-3205
Language:
English
Publication year:
2019
Bibliographic description:
Kordalska A., Olczyk M.: Is Germany a Hub of ‘Factory Europe’ for CEE Countries?// EKONOMISTA -,iss. 6 (2019), s.734-759
Sources of funding:
  • Otwarty dostęp do artykułu został sfinansowany ze środków Wydziału Zarządzania i Ekonomii
Verified by:
Gdańsk University of Technology

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