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The Economic Complexity of the Visegrád Countries and the Role of Trade with Germany

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Soyyiğit S., Michalski B.
Central European Economic Journal
|
2022
|
vol. 9
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issue 56
219-236
EN
The contemporary division of production in the global economy poses challenges typical for dependent market economies of the Visegrád countries (V4: Czechia, Hungary, Poland, and Slovakia). This comparative study explores whether the foreign trade of V4 with Germany contributes to their structural change. The analysis seeks to determine the long-term impact of specific intra-industry trade variables on the economic complexity, examined at different levels of technological sophistication. Our findings show that as a result of the characteristics of the trade dynamics, the progress of V4 structural change remains not as comprehensive as expected. As a result, it is critically important to provide incentives aimed at strengthening the geographical diversification of their exports and upgrade their position within the global value chains.
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