Abstract
A vast body of literature recognizes the importance of exports as a driver of economic growth. The increasing share of more sophisticated exports gave birth to the idea that the composition of exports, and not just exports per se, could be crucial for economic dynamics. The aim of this paper was to estimate the relative importance of exports with different technological content on economic growth in Romania and V4 economies, considering R&D (Research and Development) expenditure as a predictor of the pattern of these exports. We used a panel analysis on a data set covering the period of 1995–2017 for Romania and V4 economies. The overall results outline significant differences among selected countries in terms of how the composition of exports influenced economic growth in selected countries. In addition, significant differences were found among selected countries in how R&D expenditure influenced the composition of exports. This paper has clearly shown that the composition of exports has different effects on economic growth in selected countries, mostly explainable by country-specific factors. At the same time, the R&D activity, as the main input in the innovation process, can determine the pattern of the structure of exports. The conclusions of such research could become useful tools in shaping macroeconomic policies focused on sustained growth and long-term economic development, especially in countries concerned about improving their status in the global value chain.
Highlights
In a vast body of literature exploring the issue of export-based economic growth, the aggregate approach has gained intellectual prominence, but, most of the time, it does not explain the asymmetric effects and influences of the composition of exports on economic dynamics in different countries
Romania and the Visegrad Group economies (V4) have followed somewhat different trajectories in terms of economic performance, in much of their post-war history, Romania and the four countries of the Visegrad Group have been tributary to a model of economic development of Soviet influence conceived on bad economic decisions that ignored the economic laws and did not take into account the economic realities and available resources
We found that a 1% increase of the absolute change of MTMs exports led to an average growth of GDP per capita of 0.45% in Hungary, 0.39% in Poland and Slovakia, 0.38% in Czechia, and 0.35% in Romania
Summary
In a vast body of literature exploring the issue of export-based economic growth, the aggregate approach has gained intellectual prominence, but, most of the time, it does not explain the asymmetric effects and influences of the composition of exports on economic dynamics in different countries. After the collapse of the socialist regime in 1989, the former communist countries from Central and Eastern Europe have launched profound transformations in their economic, political, and social systems, with the desire to gain a new status in a world economy modeled by challenges and crises born out of the complexity and dynamism of globalization and a deeper integration into three economic blocs, namely the US, Europe, and Asia This turning point has brought older themes into the horizon of reflection and interrogation, and at the same time has raised new questions about the direction of change and the factors/conditions that could shape capitalism in the region, the potentiality that the socialist heritage and post-communist transformations would shape a new form of capitalism, and so on [3]. The rigid model of development, regarded by Berend as suitable for the industrialization of agrarian economies, SusStauisntabinilaibtyili2ty02200,2102, ,1128, x31FOR PEER REVIEW
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