Evolving Competitiveness of CEEC’s in an Enlarged Europe

This paper discusses the evolution of competitiveness, industrial and trade specialisation of the countries of Central and Eastern Europe (CEECs). It is shown that the paths taken by the different CEECs have been quite diverse and we attempt to show that a combination of a catching-up plus trade specialisation model is required to understand the patterns of specialisation emerging in Central and Eastern Europe. We add information about the industrial allocation of FDI and comparative educational attainment. All the above yields an interesting (and at times unexpected) picture of the evolving division of labour in an enlarged Europe