Export Structure Upgrading and Economic Growth in the Western Balkan Countries (original) (raw)
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In the past 25 years, exports have contributed strongly to growth and economic convergence in many small open economies. However, the Western Balkan (WB) region, consisting of small emerging market economies, has not fully availed itself of this driver of growth and convergence. A lack of openness, reliance on low value products, and weak competitiveness largely explain the insignificant role of trade and exports in the region’s economic performance. This paper focuses on how the countries in the WB could lift exports through stronger integration with global value chains (GVCs) and broadening of services exports. The experience of countries that joined the European Union in or after 2004 shows that participation in GVCs can help small economies accelerate export and income growth. WB countries are not well integrated into Europe’s vibrant GVCs. Trade within the region is also limited—it tends to be bilateral and not cluster-like. Our analysis shows that by improving infrastructure a...
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Lifting Growth in the Western Balkans
Departmental Papers / Policy Papers
In the past 25 years, exports have contributed strongly to growth and economic convergence in many small open economies. However, the Western Balkan (WB) region, consisting of small emerging market economies, has not fully availed itself of this driver of growth and convergence. A lack of openness, reliance on low value products, and weak competitiveness largely explain the insignificant role of trade and exports in the region’s economic performance. This paper focuses on how the countries in the WB could lift exports through stronger integration with global value chains (GVCs) and broadening of services exports. The experience of countries that joined the European Union in or after 2004 shows that participation in GVCs can help small economies accelerate export and income growth. WB countries are not well integrated into Europe’s vibrant GVCs. Trade within the region is also limited—it tends to be bilateral and not cluster-like. Our analysis shows that by improving infrastructure a...
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In this study, the relationship between export structure and economic growth in the last 11 countries (in terms of foreign trade volume) of G-20 was studied using a non-parametric approach. The study analyzes the relationship between skill-and-technology intensive manufacturing industry exportation and economic growth based on variables such as human capital and institutional quality. In demonstrating the difference between the growth rates of the countries in question (and in examining the role of skill-and-technologyintensive export), the Li-Racine (2004) Generalized Kernel Estimation Method has been used. The foreign trade goods categorized according to their technological intensity in the paper were classified in accordance with the United Nations Comtrade Harmonized System (4-digit). The last 11 countries of the G-20 in terms of foreign trade volume are the following: Turkey,