01875cas a2200253 a 4500 AALejournalIMF000730 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451923278 1018-5941 BD-DhAAL BD-DhAAL Walsh, Patrick. European Trade and Foreign Direct Investment U-Shaping Industrial Output in Central and Eastern Europe : Theory and Evidence / Patrick Walsh, Alexander Repkine. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We examine industrial output in Bulgaria, Hungary, Poland, and Romania during 1989-95 in terms of pretransitional product trade orientation. The growth of EU-oriented output within sectors of industry, ex-post trade, and market liberalization, is modeled as foreign direct investment induced Schumpeterian (vertical) waves of product innovation. The growth of non-EU-oriented output within sectors is modeled as unobservable deterministic heterogeneity. The results indicate that the gap observed in industrial output performance when comparing Eastern European to former Soviet countries is mainly explained by the inherited presence of EU-oriented production and its unconstrained growth over the transition period. Mode of access: Internet Repkine, Alexander. IMF Working Papers; Working Paper ; No. 1998/150 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/150/001.1998.issue-150-en.xml IMF e-Library