Article
Comparative Economic Studies (2002) 44, 119–136; doi:10.1057/ces.2002.22
Globalisation and Development: New Evidence from Central and Eastern Europe
The authors would like to thank three anonymous referees for their suggestions and comments that contributed to improve in a significant way the quality of this paper. They are also grateful to participants at the 11th Conference of the ITFA in Washington DC, May 2001, for their remarks on an earlier version of this text.
Lucian Cernat1 and Radu Vranceanu2
- 1UNCTAD, Trade Analysis Branch, Geneva, Switzerland
- 2ESSEC, Department of Economics Cergy, Pontoise, France
Abstract
To various degrees, Central and Eastern European countries increased their participation to the world economy over the last ten years. In particular, they accepted the challenge of trade openness and attracted significant foreign direct investment. This paper assesses the impact of these major changes on output growth in this region. Results of a panel data analysis suggest that increased EU integration and openness as well as reduced import duties were favourable to development. There is also evidence that increased FDI inflows may be associated with better output performances.
Keywords:
Transition, Openness, FDI, Development, Panel data
JEL Classifications:
F15; O52
