Search results for " factor substitution"
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ON THE ONSET OF POST-COMMUNIST INDUSTRIAL DEVELOPMENT IN CENTRAL AND EAST EUROPEAN ECONOMIES
2013
In the course of the last twenty odd years, Central and East-European economies have been striving to reform an inherited flawed trade structure, in an attempt to increase their industrial competitiveness and improve their position within the international division of labor. The respective countries have gone through an industrial metamorphosis that swept away the legacy of socialist autarky, making them better-equipped to deal with globalization challenges. The dismantling of the COMECON forced CEEs to institute severe constraints on public budgets; as a consequence, the price of physical capital edged up relative to the price of labor thereby making the respective economies relative abund…
NEW EU MEMBER COUNTRIES ARE PHASING OUT LABOR-INTENSIVE ACTIVITIES: AN ECONOMETRIC APPROACH
2012
This paper deals with the process of industrial development that has been unfolding in Central and East-European Countries during the last two decades, with special focus on changes in international specialization induced by successive shifts in comparative advantage. As it was to be expected, these advances have gradually improved the respective countries’ exports structure, the most important mutation residing in the gradual abandoning of subcontracting agreements – mostly confined to assembly-of-imported-inputs – and the expansion of the production of knowledge and human capital-intensive goods and services. European integration has most certainly been acting as a catalyst for this proce…