Export differentiation in transition economies

I investigate changes in the structure of trade of seventeen transition economies between 1996 and 2006, focusing on differences across three types of products - homogeneous goods, reference priced goods, and differentiated products. I examine shares of exports of each type of good, intensive and extensive margins, and the hazard of exporting. While there are cross-country differences in the distribution of export shares and in intensive and extensive margins, the largest differences exist in the hazard of exporting. There are significant differences in the hazard both across countries and time.

Research highlights▶ I examine the structure of trade of seventeen transition economies from 1996 to 2006. ▶ I focus on differences with respect to product differentiation. ▶ The intensive and extensive margins change, as does the hazard of exporting. ▶ Most countries increase their exports of differentiated goods. ▶ The hazard of exporting differentiated goods increases over time the most.