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The Role of Manufacturing in the Central and Eastern European Countries in the Various Periods from Transition to Mature EU Membership

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The Political Economy of Emerging Markets and Alternative Development Paths

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Abstract

Central and Eastern Europe (CEE) has historically been a substantial location for manufacturing. The role of this sector is analysed chronologically from system transition to the mature EU membership of these countries. Manufacturing has continuously had an influential role though in varying ways. These economies have largely evolved into so-called factory economies, i.e. taking a subordinate position in relation to the headquarter economies where strategic decisions are undertaken.

Two methods are used: a qualitative review in the Varieties of Capitalism (VoC) setting in a chronological approach is followed by comparative descriptive statistical analyses. The main finding is that the Dependent Market Economy (DME) model describing the CEE countries shall rather be seen as an asymmetric interdependence between headquarter and factory economies. Secondly, industrial labour productivity convergence of the CEE region was halted by the 2008 crisis, after which the gap between old and new member states was widening.

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Notes

  1. 1.

    The way how this works for the energy markets is presented by Somosi (2013).

  2. 2.

    The sectors and their codes are the following: A: Agriculture, Forestry and Fishing; B: Mining and Quarrying; C: Manufacturing; D: Electricity, Gas, Steam and Air Conditioning Supply; E: Water Supply; Sewerage, Waste Management and Remediation Activities; F: Construction; G: Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles; H: Transportation and Storage; I: Accommodation and Food Service Activities; J: Information and Communication; K: Financial and Insurance Activities; L: Real Estate Activities; M–N: Professional, Scientific and Technical Activities and Administrative and Support Service Activities; O-Q: Public Administration and Defence; Compulsory Social Security and Education and Human Health and Social Work Activities; R-U: Arts, Entertainment and Recreation and Other services. According to this categorisation A-B makes up the primary sector; C-F contains secondary sector elements and G-U are services.

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Pelle, A., Tabajdi, G. (2023). The Role of Manufacturing in the Central and Eastern European Countries in the Various Periods from Transition to Mature EU Membership. In: Ricz, J., Gerőcs, T. (eds) The Political Economy of Emerging Markets and Alternative Development Paths. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-20702-0_6

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