| The Vienna Institute for International Economic Studies - WIIW |
Structure of trade in manufactured products between Southeast
European countries and the EU
The labour/capital-intensive and low-skill/blue-collar pattern of specialization
of the seven Southeast European countries (Albania, Bosnia and Herzegovina,
Bulgaria, Croatia, Macedonia, Romania, and Yugoslavia) in their manufacturing
industry trade with the EU gives evidence of their backwardness, and that
not only in comparison to the EU, but also to the more advanced transition
economies. The dominance of inter-industry trade points to a substantial
gap between the region and the EU in the structure of factor endowments.
The typical areas of comparative advantage vis-à-vis the EU include
wood products, textiles and basic metals. Romania and Croatia appear the
most advanced countries of Southeast Europe, judging by their export specialization
to the EU, but when compared to other transition economies, they seem almost
as backward as other countries of the region.
The structure of tax revenues in CEE and EU countries: a comparison
The tax structures in the EU and the CEECs differ quite considerably.
Partly restrained by administrative capacities, partly to promote economic
development, the CEECs rely much more on indirect taxes than the average
EU country. Consequently also the statutory tax rates on personal and corporate
income are on average (much) lower in the CEECs than in the EU, while consumption
tax rates are generally higher in the CEECs. The EU enlargement might exert
positive or negative tax-related (economic) effects on either the EU or
the CEECs.
Sector profile: the electrical and optical equipment sector in the
CEECs
The sector is an important and strategic part of manufacturing, being
at the core of innovation and research. It is considered a R&D- and
skill-intensive industry, producing a wide range of mostly high-technology
products. In Central Europe, the sector has revived and experienced dynamic
production and export growth with good future prospects.