Economic Specialization and Trade Imbalances in Central and Eastern Europe

Abstract

The purpose of the article is to analyze the development strategies of Central and Eastern European countries in terms of their degree of participation in the international division of labour, foreign trade economic specialization and competitive advantages in the global economy. The research methodology is a modified methodology for decomposing a trade balance by contribution of economic activities and sectors of the economy on the basis of OECD interregional inputoutput tables. The analysis revealed that CEE countries resort to different development strategies: some seek to actively oppose deindustrialization, others adhere to a service strategy in their efforts to increase exports of services.