WIIW Structural Report (December 1997)

Structural Developments in Central and Eastern Europe

(by Michael Landesmann et al.)
 

List of Tables and Figures

Introduction to WIIW’s first Structural Report - p. 11
Figure 1: Industrial production, employees, productivity, investment and exports, average annual growth rates in per cent, 1990-92 and 1993-96 - p. 3
 
Chapter 1
Patterns of Structural Change in Manufacturing in the Transition Countries - p. 11
Table 1: Growth rates of industrial production and GDP in the CEECs, 1990-96 - p. 12
Table 2: Structural Change Indicators (S*) - p. 13
Table 3: Expected and actual winners and losers of transition, 1990-92 - p. 16
Table 4: Major winners and losers of transition, 1990-1992 - p. 17
Table 5: Winners and losers of transition, 1993-95 - p. 19
Table 6: Major targets for FDI and winners and losers of transition, 1994 - p. 28
Table 7: Comparison of individual CEECs' industrial structures with
 various groups of West European countries - p. 33
Table A1 Shares of industries in CEECs relative to EU-North at 2-digit NACE level, 1989, 1992 and 1995 - p. 47
Table A2: Shares of industries in CEECs relative to EU-South at 2-digit NACE level, 1989, 1992 and 1995 - p. 49
Figure 1: Hungary 1993-95 - p. 22
Figure 2: Poland 1993-95 - p. 22
Figure 3: Czech Republic 1994-95 - p. 23
Figure 4: Slovakia 1994-95 - p. 23
Figure 5: Romania 1993-95 - p. 24
Figure 6: Hungary 1993-95 - p. 30
Figure 6a: Hungary 1993-95, without food industry - p. 30
Figure 7: Czech Republic 1994-95 - p. 31
Figure 7a: Czech Republic 1994-95, without electrical equipment - p. 31
Figure 8: Slovakia 1994-95 - p. 32
Figure 9: Output share differences of selected labour-intensive and sophisticated engineering branches in CEECs compared to the West - p. 36
Figure 10: Share of industries in total production relative to CEEC averages - p. 39
 
Chapter 2
Structural Change in CEEC Labour Markets - p. 51
Table 1: GDP and employment 1990-95 - p. 52
Table 2: Unemployment - p. 55
Table 3: Employment by activities - p. 59
Table 4: Employment in the service sector by individual branches - p. 65
Figure 1: Participation rates in CEECs and selected OECD countries - p. 53
Figure 2: Comparison of CEEC employment structures in 1989 and 1995 - p. 57
Figure 3: CEEC employment structures compared with EU-North and EU-South, 1993 - p. 61
Figure 4: CEEC employment structures in services compared with EU-North and EU-South, 1993 - p. 62
Figure 5: CEEC employment structures in services, 1995 - p. 63
 
Chapter 3
Trade Restructuring and Export Competitiveness - p. 69
Table 1: CEEC exports by region - p. 70
Table 2: CEEC imports by region - p. 71
Table 3: EU(12) manufacturing industry imports from CEECs, ECU mn (without intra-EU trade) - p. 73
Table 4: CEECs' market shares in EU(12) manufacturing industry imports (without intra-EU trade) - p. 73
Table 5: EU(12) manufacturing industry exports to CEECs, ECU mn (without intra EU-trade) - p. 74
Table 6: CEECs' shares in EU(12) manufacturing industry exports (without intra EU-trade) - p. 74
Table 7: CEECs' trade balances in manufacturing industry trade with the EU(12), ECU mn (without intra EU trade) - p. 75
Table 8: Distance of CEEC export structures to overall EU import structure - p. 76
Table 9: Distances between CEECs' export structures to the EU - p. 79
Table 10: X-factor intensities of CEECs' most competitive industries in 1993-95 - p. 83
Table A1: Bulgaria: gaining and losing industries in exports to the EU(12), 1993-95 - p. 90
Table A2: Czech Republic: gaining and losing industries in exports to the  EU(12), 1993-95 - p. 91
Table A3: Hungary: gaining and losing industries in exports to the EU(12), 1993-95 - p. 92
 Table A4: Poland: gaining and losing industries in exports to the EU(12), 1993-95 - p. 93
Table A5: Romania: gaining and losing industries in exports to the EU(12), 1993-95 - p. 94
Table A6: Slovak Republic: gaining and losing industries in exports to the EU(12), 1993-95 - p. 95
Table A7: Slovenia: gaining and losing industries in exports to the EU(12), 1993-95 - p. 96
Figure 1: Adjustment of CEECs’ and Austria’s manufacturing industry exports to the EU, 1980-95 (correlation of export structures in individual years with the structure in the year 1980) - p. 77
Figure 2: Adjustment of CEECs’ and Austria’s manufacturing industry exports to the EU, 1989-95 (correlation of export structures in individual years with the structure in the year 1989) - p. 77
Figure 3: Distance of CEECs' and Austria's export structures to the import structure of the EU - p. 78
Figure 4: Correlation of x-factor intensities and export growth to the EU(12) for 50 most competitive industries, 1993-95 - p. 83
Figure 5: Correlation of x-factor intensities and market shares in EU(12) for 50 most competitive industries in 1995 - p. 84
Figure 6: Correlation of x-factor intensities with RCA values in trade with the EU(12), 1989-95 - p. 86
 
Chapter 4
Trends in Wages, Productivity and Labour Costs - p. 97
Table 1: Gross wages and salaries per month per employee, total, ECU at ER - p. 99
Table 2: Wages, Productivity and Unit Labour Costs (ULC), 1990-96 (annual changes in per cent) - p. 101
Table 3: Monthly gross wages in the manufacturing industry, 1995 (Manufacturing = 100) - p. 103
Table 4: Overview: CEECs’ aggregate wages, productivity and ULCs in 1993 (Austria = 100) - p. 110
Table 5: Unit labour costs (ULCs), industry (wages/productivity), exchange rate (ECU) adjusted (change in per cent against preceding year)  - p. 111
Table 6: Productivity in the manufacturing industry, 1995 (Manufacturing = 100) - p. 113
Table 7a: International comparison of ULCs in the manufacturing industry (year 1995, PPP for GDP, Austria = 100) - p. 115
Table 7b: International comparison of ULCs in the manufacturing industry (year 1995, PPP for gross fixed capital formation, Austria = 100) - p. 116
Figure 1: Wage dispersion (Manufacturing = 100) - p. 104
Figure 2: Unit labour costs (ULCs), exchange rate (ECU) adjusted (1989 = 100) - p. 106
Figure 3: International comparison of unit labour costs (ULCs), PPP adjusted (Austria = 100) - p. 106
Figure 4: Unit labour costs (ECU adjusted), annual growth rates in per cent - p. 107
Figure 5.1a: Average compensation rates in 1993 at current USD - p. 121
Figure 5.1b: Average compensation rates in 1993 at PPP rates - p. 122
Figure 5.2a: Average compensation rates in 1993 at current USD - p. 123
Figure 5.2b: Average compensation rates in 1993 at PPP rates - p. 124
Figure 5.3a: Compensation rates at USD (weighted coefficients of variation) - p. 125
Figure 5.3b: Compensation rates at PPP rates (weighted coefficients of variation) - p. 126
Figure 5.4a: Average productivity levels in 1993 at current USD - p. 127
Figure 5.4b: Average productivity levels in 1993 at current PPP rates - p. 128
 
Chapter 5
Vertical Product Differentiation in EU Markets:
the Relative Position of East European Producers - p. 131
Table A1: Price gap/quality measures by 3-digit NACE industries: mechanical engineering 321-328, electrical goods 330, 341-347, 371-374 (1988-94), (EU 12 = 1), Exports to EU - p. 151
Table A2: Weighted price gaps for total manufacturing (NACE 24-49) and x-factor intensive branches 1988-94, (EU 12  = 1), Exports to EU - p. 153
Table A3: Comparative export structure in different quality segments for 3-digit NACE engineering industries 322 (machine tools) and 342  (electrical machinery), Exports to EU, averages 1988-90 and 1992-94 - p. 155
Table A4: Regressions of quality segment and price gap variables on country (country group) dummies coefficients and t-values for NACE engineering industries 321-328, 330, 341-347 and 371–374 - p. 165
Table A5: Regressions of quality segment and price gap variables on country (country group) dummies coefficients and t-values for NACE textile, clothing and footwear industries 436, 438, 439, 441, 442, 451, 453, 455, 456 - p. 157
Table A6: Regressions of price gap variables on country (country group) dummies coefficients and t-values for NACE food, drink and tobacco industries 411–429 - p. 158
Table A7: Percentage shares in total outward processing of EU products NACE industries 436 (knitting industry), 451 (manufacture of mass-produced footwear) and 453 (manufacture of ready-made clothing and accessories) - p. 159
Table A8: Percentage shares of EU imports after outward processing in total EU imports, 1988-94 NACE industries 436 (knitting industry), 451 (manufacture of mass-produced footwear) and 453 (manufacture of ready-made clothing and accessories) - p. 160
Table A9: Ratio of weighted product price averages of imports after outward processing of EU products to those of normal EU imports NACE industries 436 (knitting industry), 451 (manufacture of mass-produced footwear) and 453 manufacture of ready-made clothing and accessories) - p. 161
Figure A1: Shifts in country dummies (price gap) 1988/90 to 1992/94 and GDP per capita - p. 162
Figure A2: Shifts in country dummies (representation in high quality segment) 1988/90 to 1992/94 and GDP per capita - p. 163
Figure A3: Shifts in country dummies (price gap) 1988/90 to 1992/94 and GDP per capita - p. 164
Figure A4: Shifts in country dummies (representation in high quality segment) 1988/90 to 1992/94 and GDP per capita - p. 165
Figure A5: Shifts in country dummies (price gap) 1988/90 to 1992/94 and GDP per capita - p. 166
Figure A6: Shifts in country dummies (price gap) and the percentage change of exchange rate/PPP (both 1988/90 to 1992/94) - p. 167
Figure A7: Shifts in country dummies (price gap) and the percentage change of exchange rate/PPP (both 1988/90 to 1992/94) - p. 168
Figure A8: Shifts in country dummies (price gap) and the percentage change of exchange rate/PPP (both 1988/90 to 1992/94) - p. 169
Figure A9: Exchange rate appreciations/depreciations, changes in price gaps and changes in market shares (*,+,-) over the period 1992 to 1994 - p. 170
Figure A10: Exchange rate appreciations/depreciations, changes in price gaps and changes in market shares (*,+,-) over the period 1992 to 1994 - p. 171
 
Chapter 6
Foreign Direct Investment in CEEC Manufacturing - p. 173
Table 1: Total foreign direct investment, stock, USD mn - p. 173
Table 2: Structure of the total corporate sector and of the foreign sector (FIEs) nominal (equity) capital, 1994, per cent- p. 175
 Table 3: Ownership structure of nominal (equity) capital in manufacturing companies in the CEECs, 1994, per cent - p. 176
Table 4: Share of FIEs in main indicators of manufacturing companies, 1994 and 1995, per cent - p. 177
Table 5: Industries with the highest shares of nominal capital stock and FDI capital of FIEs, per cent of FIEs total, 1994 - p. 180
Table 6: Industries with significantly above-average shares of FIEs in sales, 1994, per cent - p. 181
Table 7: Most important exporting industries for FIEs, 1994, per cent - p. 184
Table 8: Share of commodity groups in manufacturing exports to the EU-15, 1990 and 1995 - p. 187
Table 9: Most important investment target-industries for FIEs, 1994, per cent - p. 190
Table A1: Nominal (equity) capital of manufacturing FIEs by industries, 1994, per cent - p. 196
Table A2: Foreign capital (FDI) in the nominal capital of manufacturing FIEs by industries, 1994, per cent - p. 196
Table A3: Employed persons in manufacturing FIEs by industries, 1994, per cent - p. 197
Table A4: Output (sales) of manufacturing FIEs by industries, 1994, per cent - p. 197
Table A5: Export sales of manufacturing FIEs by industries, 1994, per cent - p. 198
Table A6: Investment of manufacturing FIEs by industries, 1994, per cent - p. 198
Table A7: Nominal capital, FIEs share in the total of the manufacturing industries, 1994, per cent - p. 199
Table A8: Employed persons, FIEs share in the total of the manufacturing industries, 1994, per cent - p. 199
Table A9: Sales, FIEs share in the total of the manufacturing industries, 1994, per cent - p. 200
Table A10: Export sales, FIEs share in the total of the manufacturing industries, 1994, per cent - p. 200
Table A11: Export intensity (export sales/sales) of all enterprises and FIEs by manufacturing industries, 1994, per cent - p. 201
Table A12: Investment, FIEs share in total of the manufacturing industries, 1994, per cent - p. 201
Table A13: Labour productivity (sales/employee) of FIEs compared to the total industry’s, 1994, per cent - p. 202
Table A14: Capital productivity  (sales/nominal capital) of FIEs compared to the total industry’s, 1994, per cent - p. 202
Table A15: Investment propensity (investment outlays/nominal capital) of FIEs, compared to the total industry’s, 1994, per cent - p. 203
 
 Chapter 7
Balance-of-payments Structures and Macroeconomic Growth
in Central and Eastern Europe - p. 205
Table 1: Foreign debt, in per cent of exports - p. 211
Table 2: Trade balance, in per cent of GDP - p. 212
Table 3: Current exchange rates relative to Purchasing Power Parities - p. 212
Table 4: Growth differential vis-à-vis Germany (percentage points) - p. 213
Table 5: Current account, in per cent of GDP - p. 214
Table 6: Exports (goods), in per cent of imports (goods) - p. 215
Table 7: Rate of nominal devaluation (+) against the DEM, in per cent - p. 216
Table 8: Changes of producer prices, in DEM terms - p. 216
Table 9: Rate of real devaluation against the DEM, in per cent - p. 217
Table 10: Services, net, in per cent of exports (goods) - p. 218
Table 11: Revenues from travel, net, in per cent of exports (goods) - p. 218
Table 12: Transport revenues, net, in per cent of exports (goods) - p. 219
Table 13: Other services, net, in per cent of exports (goods) - p. 219
Table 14: Overall balance of (factor) income flows, in per cent of GDP - p. 220
Table 15: Overall balance of (factor) income flows, in per cent of exports (goods) - p. 221
Table 16: Inflow of transfers, in per cent of exports (goods) - p. 221
Table 17: Capital and financial accounts, in per cent of exports (goods) - p. 223
Table 18: Aggregate (direct, portfolio, other) investment, net, in per cent of GDP - p. 223
Table 19: Current account balance relative to net FDI inflows - p. 224
Table 20: Reserve assets, change, in per cent of GDP - p. 225
Table A1: Bulgaria: Balance of payments, USD mn - p. 230
Table A2: Croatia: Balance of payments, USD mn - p. 231
Table A3: Czech Republic: Balance of payments, USD mn - p. 232
Table A4: Hungary: Balance of payments, USD mn - p. 233
Table A5: Poland: Balance of payments, USD mn - p. 234
Table A6: Romania: Balance of payments, USD mn - p. 235
Table A7: Russia: Balance of payments, USD mn - p. 236
Table A8: Slovak Republic: Balance of payments, USD mn - p. 237
Table A9: Slovenia: Balance of payments, USD mn - p. 238
Table A10: Ukraine: Balance of payments, USD mn - p. 239
 

WIIW Structural Report, M. Landesmann et al.: Structural Developments in Central and Eastern Europe. WIIW Report 1997, December 1997, xix + 239 pp. including 100 Tables and 43 Figures, US$ 950.-/ATS 12,000.-

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