TY - BOOK ID - 84538545 TI - European Trade and Foreign Direct Investment U-Shaping Industrial Output in Central and Eastern Europe : Theory and Evidence AU - Walsh, Patrick. AU - Repkine, Alexander. PY - 1998 SN - 1462362990 1451988419 1283564025 1451902042 9786613876478 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Exports and Imports KW - Macroeconomics KW - Industries: General KW - Economic Growth of Open Economies KW - Technological Change: Choices and Consequences KW - Diffusion Processes KW - Socialist Systems and Transitional Economies: Factor and Product Markets KW - Industry Studies KW - Population KW - Trade: General KW - International Investment KW - Long-term Capital Movements KW - Industrial Organization: General KW - Trade Policy KW - International Trade Organizations KW - Macroeconomics: Production KW - International economics KW - Finance KW - Exports KW - Foreign direct investment KW - Industrial sector KW - Trade liberalization KW - Production growth KW - International trade KW - Balance of payments KW - Economic sectors KW - Production KW - Investments, Foreign KW - Industries KW - Commercial policy KW - Economic theory KW - Bulgaria UR - https://www.unicat.be/uniCat?func=search&query=sysid:84538545 AB - We examine industrial output in Bulgaria, Hungary, Poland, and Romania during 1989–95 in terms of pretransitional product trade orientation. The growth of EU-oriented output within sectors of industry, ex-post trade, and market liberalization, is modeled as foreign direct investment induced Schumpeterian (vertical) waves of product innovation. The growth of non-EU-oriented output within sectors is modeled as unobservable deterministic heterogeneity. The results indicate that the gap observed in industrial output performance when comparing Eastern European to former Soviet countries is mainly explained by the inherited presence of EU-oriented production and its unconstrained growth over the transition period. ER -