EXPORT DIVERSIFICATION AND ECONOMIC GROWTH IN TRANSITION: LESSONS FROM THE 2008 FINANCIAL CRISIS IN CEE

This paper examines the role of export diversification for economic growth in CEE transition economies. The results prove that before the outbreak of 2008 financial crisis export specialization rather than diversification was an important growth factor, especially in those countries which followed more specialized export patterns. However, after the outbreak of the crisis the direction of this causal link changed essentially. All three main aspects of export diversification turned out to play a significant role in reducing the growth slowdown effects of the 2008 financial crisis.