Problems and prospects of export diversification of countries of Central and Eastern Europe (calculations based on econometric analysis)

Abstract

Aim. The work aimed to identify the explanatory factors that determine the level of export diversification of countries of Central and Eastern Europe (CEE) in 2010–2021.Tasks. The work was performed to analyze theoretical aspects of export diversification of Eastern European countries; analyze the dynamics of changes in the volumes and structure of exports of the CEE states; assess the main factors influencing the process of export diversification in the countries of the region under consideration, and identify possible prospects for its further development.Methods. The author used such research methods as statistical analysis, observation, econometric analysis, generalization, description, graphical modeling and data classification.Results. The econometric analysis results suggest that there is a long-term relationship between export diversification and per capita gross domestic product, trade openness, human and physical capital accumulation, and foreign direct investment.Conclusion. The socio-economic indicators analyzed in this article are the main factors stimulating the process of export diversification in the CEE countries. During the study period of 2010–2021, the inflation rate showed a negative effect on the degree of export diversification in the CEE countries.