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Begin New Search Topic European Union Author Alexandra Bykova

1. Industrial Policy for a New Growth Model: A Toolbox for EU-CEE Countries

Author:
Alexandra Bykova, Rumen Dobrinsky, Richard Grieveson, Maciej J. Grodzicki, and Doris Hanzl-Weiss
Publication Date:
07-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The EU member states of Central Eastern Europe (EU-CEE) have experienced rapid convergence in the decades following their EU accession, and have built up strong export-oriented manufacturing sectors boosted by foreign direct investment inflows. While this growth model has brought many positives, there are indications that it is hitting its limits. Endogenous limits to EU-CEE’s growth model are exacerbated by exogenous challenges of the ‘twin’ (green and digital) transitions, and the fallout of the pandemic and Russian invasion of Ukraine. This reinforces the imperative for EU-CEE to transition to a more innovation-driven, new growth model, enabled by a comprehensive industrial policy. However, the EU-CEE countries have not only lacked a stable and strategic approach to industrial policy in their development paths, but also find themselves in a unique position due to EU membership. As a result, innovation and industrial policies are underdeveloped in the region. Based on an in-depth analysis of the industrial landscape and the industrial policy environment of the region, we propose eight pillars for creating a EU-CEE version of the entrepreneurial state.
Topic:
Climate Change, Industrial Policy, European Union, Economic Growth, and Green Transition
Political Geography:
Poland, Lithuania, Estonia, Bulgaria, Romania, Hungary, Croatia, Latvia, Slovenia, Slovakia, and Czechia

2. Trade Balances and International Competitiveness in Cyber-physical, Digital Task-intensive, ICT Capital-intensive and Traditional Industries

Author:
Alexandra Bykova and Roman Stöllinger
Publication Date:
05-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In this report, we analyse the international competitiveness of the EU in four industry groups over the period 1995-2018. The groups are delineated by specific factor intensities, where these intensities are assessed from digital tasks performed by labour services and ICT capital stocks. The EU’s positions relating to trade balances, revealed comparative advantages and unit value ratios are assessed relative to its main competitors, such as the US, China, Japan and South Korea. The trade specialisation patterns confirm EU advantages in traditional industries, which still represent the largest part of global trade, and in the group of digital task-intensive industries. In the cyber-physical group of industries, which are characterised by both high digital task and ICT capital intensities, the EU records a trade deficit, although this has been receding in recent years. Competitiveness indicators depict heterogeneity among EU countries. The loss of international competitiveness for some technology front-runners is a worrying sign. On the positive side, however, a reduction in trade deficits or an improvement in product quality and market shares is evident for certain EU countries, especially in the Central European region.
Topic:
International Trade and Finance, European Union, Trade, Digitalization, and International Competition
Political Geography:
Japan, China, Europe, Asia, South Korea, and United States of America