| Abstract: |
This paper observes rising unit values of manufacturing exports from ten central and eastern European countries to the original fifteen member states of the European Union between 1995 and 2005. These rising unit values are often explained as the result of rising quality. Using product- and industry-level import data, this research employs various methods to assess whether it is so. Similarly to existing research literature on export quality of the central and eastern European countries, this paper concludes that their export quality is really rising. However, in contrast to the literature, this research employs several different and innovative methods to assess export quality, some of them delivering more reliable results. One brand-new method, which employs a regression model for panel data, is based on the ratio between real unit values and those predicted by the model. Another method uses the ratio between unit values of the central and eastern European countries and of the most developed countries. Other applied methods include calculations of product penetration, export similarity with the most developed countries, gains in market share and decomposition of export growth. This paper employs several innovative methods and one brand-new, all of them provide evidence that quality of the central and eastern European manufacturing exports is rising. |
