Abstract

This article examines the contribution of competitiveness and trade product structure to China’s commercial links with ten states located in Central and Eastern Europe (CEE). A constant market share analysis for the 2002–2011 period shows that, except for Romania, both CEE states and China increased their market shares in each other’s market mainly due to their improved competitiveness in intermediate goods. However, with the notable exception of Slovakia, other CEE economies and China tended to gain market shares in product groups characterised by relatively non-dynamic import demand growth. This mismatch between the Competitiveness and Structure Effects points to the room for an expansion of China–CEE trade.

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