Photo by Laura J. Cole During the 2011 Faculty Day of Scholarship, Assistant Professor of Economics Anca Voicu, along with Assistant Professor of Economics Martina Vidovic, presented "CEEC's Integration into Regional Global Production Networks." Abstract of their presentation: This paper examines the involvement of the CEECs into regional and global production networks over the period 1999 to 2009 on two different levels. First, we focus on the effects of production networks on the two margins of exports of final goods to OECD countries. Second, we specifically analyze the effects of economic integration on trade in intermediate and final products. We employ a theoretically justified gravity model which incorporates the extensive margin of trade and accounts for firm heterogeneity. We first estimate the model for highly disaggregated exports (SITC 5-digits) in final goods and then augment it by including the corresponding imported intermediate products from the OECD together the usual control variables. Next, we estimate the model for each trade margin (extensive and intensive) separately to evaluate the effects of the reduction in trade costs on exports and imports of each category of goods. Our results indicate that the CEECs have indeed become more integrated into regional production networks and this has had a positive impact in terms of increasing trade volumes and trade varieties between the two parts of the European continent.

Photo by Laura J. Cole During the 2011 Faculty Day of Scholarship, Assistant Professor of Economics Martina Vidovic, along with Assistant Professor of Economics Anca Voicu presented "CEEC's Integration into Regional Global Production Networks." Abstract of their presentation: This paper examines the involvement of the CEECs into regional and global production networks over the period 1999 to 2009 on two different levels. First, we focus on the effects of production networks on the two margins of exports of final goods to OECD countries. Second, we specifically analyze the effects of economic integration on trade in intermediate and final products. We employ a theoretically justified gravity model which incorporates the extensive margin of trade and accounts for firm heterogeneity. We first estimate the model for highly disaggregated exports (SITC 5-digits) in final goods and then augment it by including the corresponding imported intermediate products from the OECD together the usual control variables. Next, we estimate the model for each trade margin (extensive and intensive) separately to evaluate the effects of the reduction in trade costs on exports and imports of each category of goods. Our results indicate that the CEECs have indeed become more integrated into regional production networks and this has had a positive impact in terms of increasing trade volumes and trade varieties between the two parts of the European continent.