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Exports and economic growth in Central and East European countries during transition

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Abstract:

This paper quantifies the contribution of exports to economic growth in Central and East European countries (CEECs) during transition. Two theoretical models are examined: the first is based on an aggregate production function which includes exports as an additional 'input'; while the second is based on a two-sector (exports and non-exports) model where exports provide positive externalities in non-export production. Each model is estimated with both fixed and random effects using panel data. Results show that the random effects model is preferred and that exports have a significant impact on economic growth.

Document Type: Research Article

DOI: https://doi.org/10.1080/000368042000241123

Publication date: 2004-09-01

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