No abstract

F12, C23,

Utilizing panel data for 14 East European transition economies, we discuss the link between product variety and growth. The empirical work relies upon some direct measures of product variety calculated from 5-digit OECD trade data. On balance, the results suggest that the growth patterns of the East European transition countries may be best represented by Ventura's (1997) model of outward orientation and integration with the world economy.JEL classifications: C33, F43, O31, O33, O52.

Utilizing panel data for 14 East European transition economies, we discuss the link between product variety and growth. The empirical work relies upon some direct measures of product variety calculated from 5-digit OECD trade data. On balance, the results suggest that the growth patterns of the East European transition countries may be best represented by Ventura's (1997) model of outward orientation and integration with the world economy.JEL classifications: C33, F43, O31, O33, O52.

A common argument against monetary union is that it precludes stabilization of economies through monetary and exchange rate policy. We address this point by calculating the relative empirical importance of industry-speci¢c, country-speci¢c and aggregate disturbances using a comparable international data set comprising annual data from 1971 to 1993 for 19 OECD countries and 25 two-digit industries. The evidence seems to suggest that the country-speci¢c shocks have declined over the last 20 years.

All opinions expressed are those of the authors and do not necessarily reflect the views of the Bank of Finland.

We calculate a variety of welfare gains for Mainland China, following the approach of Romer (1994), who emphasized that proper modelling of the impact of trade restrictions on the number of available product varieties is crucial for quantifying the welfare impact of trade liberalization. The empirical work presented relies on direct measures of product variety calculated from highly disaggregated trade data. The emerging conclusion is that freer trade has indeed boosted welfare

No abstract