{
  "title": "Competitiveness in Central-Europe: What Has Happened Since EU Accession?",
  "publication": "IMF Working Papers, June 1, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985/index.md",
  "summary": "Since EU accession, trade flows have exhibited strong dynamics in Central-Eastern Europe (CEE). During the period leading to the current global turmoil, the region has also experienced continuous exchange rate appreciation and rapid FDI inflows, both likely to have affected these countries' competit",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Focus: evolution of determinants of exports and imports in Central-Eastern Europe (CEE) over 2002-07 and their contribution to trade, with a view to assessing competitiveness developments.\n- Context: Since EU accession, CEE experienced strong trade dynamics, continuous exchange rate appreciation, and rapid FDI inflows prior to the global turmoil referenced in the paper.\n- Objective: Describe how determinants evolved and use econometric analysis to derive their contribution to trade up to 2007."
    },
    {
      "heading": "Key findings",
      "content": "- Trade and market position\n  - The global and domestic upswings, along with rising trade market shares, largely account for trade developments in CEE countries until 2007.\n  - Evidence points to continuous nonprice competitiveness gains over 2002-07.\n- Exchange rates and competitiveness\n  - Exchange rate appreciation did not unduly weigh on export and import growth, suggesting most appreciation reflected an upward movement in its equilibrium value.\n- Vulnerabilities\n  - Despite entering the global slowdown period from a strong competitiveness position, the crisis revealed the vulnerability associated with heavy reliance on global demand to a trade shock."
    },
    {
      "heading": "Methodology (as described)",
      "content": "- Period analyzed: 2002-07.\n- Approach: Econometric derivation of contributions of determinants to exports and imports to assess competitiveness developments.\n- Determinants considered (as described in summary): global demand/upswings, domestic upswings, trade market shares, exchange rate movements, FDI inflows."
    },
    {
      "heading": "Policy implications and interpretations",
      "content": "- Nonprice competitiveness gains matter: Rising trade market shares and strong global/domestic demand underpinned trade performance.\n- Exchange rate assessment: Observed appreciation appears largely consistent with an upward shift in equilibrium exchange rates rather than a loss of price competitiveness.\n- Risk management: Policymakers should be aware that strong integration with global demand can amplify vulnerability to external trade shocks.\n\n---\n\n Content in this bundle\n\n- Wp09121\n  - Wp09121 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp09121 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985/bundle-manifest.json)",
    "Authors: Céline Allard",
    "Published: June 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451872682.001",
    "Focus: evolution of determinants of exports and imports in Central-Eastern Europe (CEE) over 2002-07 and their contribution to trade, with a view to assessing competitiveness developments.",
    "Context: Since EU accession, CEE experienced strong trade dynamics, continuous exchange rate appreciation, and rapid FDI inflows prior to the global turmoil referenced in the paper.",
    "Objective: Describe how determinants evolved and use econometric analysis to derive their contribution to trade up to 2007.",
    "Trade and market position",
    "Exchange rates and competitiveness",
    "Vulnerabilities",
    "Period analyzed: 2002-07.",
    "Approach: Econometric derivation of contributions of determinants to exports and imports to assess competitiveness developments.",
    "Determinants considered (as described in summary): global demand/upswings, domestic upswings, trade market shares, exchange rate movements, FDI inflows.",
    "Nonprice competitiveness gains matter: Rising trade market shares and strong global/domestic demand underpinned trade performance.",
    "Exchange rate assessment: Observed appreciation appears largely consistent with an upward shift in equilibrium exchange rates rather than a loss of price competitiveness.",
    "Risk management: Policymakers should be aware that strong integration with global demand can amplify vulnerability to external trade shocks.",
    "**Wp09121**"
  ],
  "related": [
    {
      "title": "Wp09121",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2009/_wp09121.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2009/_wp09121.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2009/_wp09121.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/competitiveness-in-central-europe-what-has-happened-since-eu-accession-22985/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T11:01:21.600Z"
}