Vertical Specialization in Manufacturing Industry: Evidence from Central and Eastern European Countries (CEECS)

Dr. Maya Moalla

Following the dissolution of the Soviet Union, CEE countries transitioned their economic structure from a command economy to a market-oriented one to deal with the challenges of globalization. Economic and political transformations had occurred. Since their EU membership (in 2004), CEE countries have accomplished developments that warranted intensive participation in the cross-border production chains. Because of their comparative advantages, especially in the manufacturing industries, these countries became more specialized in labor-intensive and resource-intensive sectors and offered companies with low wages, flexible working, tax incentives, and production sites. The adaption of the CEE countries to the global markets for more than 25 years had been ascribed to the inferences of the policies of building market institutions, macroeconomic stabilization, structural reforms policy packages, and privatization. Except for the period of the 2008-2009 global financial crisis, the vertical specialization rate of the CEE countries showed an increase during the period (2000-2014). Moreover, it continued to rise promptly after 2004. The highest average vertical specialization rate is counted for Hungary followed by Slovakia, Czech Republic, Estonia, Slovenia, Lithuania, Poland, and Latvia respectively. Moreover, the vertical specialization rate of the manufacturing industries in Estonia, Hungary, Latvia, and Poland was higher than that in the entire economy. Furthermore, a higher vertical specialization rate in medium-high and high technology sectors accounted for Estonia, Hungary, Slovakia, and Slovenia. In medium-low technology sectors, a higher vertical specialization rate accounted for the Czech Republic, Latvia, Lithuania and Poland.


Be Our InTraders’ Blogger for Free Registration to InTraders’ Conferences and International Books

The 10th InTraders International Conference On Social Sciences and Education, 12-16 June 2023, University of Craiova, Craiova, Romania


Maya Moalla

I am a forest engineer (KTÜ). I completed my master's degree and PhD. in economics at Mersin University. I am interested in economic growth and development. Looking for academic positions.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker