The goal of this article is to assess the impact of the euro adoption on the complexity of goods in Estonian exports. Ricardian and Heckscher-Ohlin models of trade would predict that such a policy decision (seen as an example of trade liberalization) may result in specialization in the production of either more or less sophisticated goodsthe effect depends on country's technological advancement and factor endowment. At the same time intensified FDI flows may enhance engagement of a country in international production chains with ambiguous consequences for exports complexity. Since it is impossible to a priori predict the effect monetary integration may have on the complexity, it is reasonable to conduct an empirical (and a posteriori) analysis. The authors applied the Synthetic Control Method to compare the observedpost-adoption levels of exports complexity in Estonia with the counterfactual values with Estoniaremaining outside of the Eurozone. The obtained results show that the adoption of the euro has resulted inthe increase in complexity of exported goods (compared to counterfactual scenario).
This article analyses exports of services from Czechia, Hungary, Poland and Slovakia between 2010 and 2018, focusing on specialisation and sophistication, also known as complexity. The symmetric revealed comparative advantage index was used to determine fields of specialisation, and PRODY and EXPY indices were used to measure complexity. The results suggest that the Visegrad countries predominantly specialised in the export of relatively unsophisticated services compared to other European Union countries. Still, exports of services from the Visegrad countries were more complex than their real GDP per capita would suggest, and this sophistication is growing. This is due to the convergence of sophistication levels between service categories rather than advances in the structure of services exported by the Visegrad countries. Hence, integration with more developed European Union countries sustained existing fields of specialisation.
The paper investigates the link between firm-level productivity and internationalisation (through exports, imports and foreign direct investment (F.D.I.)) in the Lodz Voivodeship, Poland. The Olley-Pakes algorithm was used to estimate firm-level productivity. Two hypotheses were then tested -self-selection hypothesis (stating that internationalisation is only possible at sufficiently high productivity levels) and learning hypothesis (claiming that engaging in international activity facilitates productivity growth). It has been found that productivity may affect firms' decisions about engaging in import and F.D.I., while there is no evidence of such an effect regarding exports. At the same time, there is no proof for learning, suggesting that within the timeframe of the analysis firms from the Lodz Voivodeship did not experience productivity gains due to international trade or investment.
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