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EU Enlargement and Trade Integration: Lessons from a Gravity Model

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Author Info
Matthieu Bussière
Jarko Fidrmuc
Bernd Schnatz

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Abstract

The authors estimate gravity models using a large panel of bilateral trade flows across 61 countries between 1980 and 2003, which are applied as a benchmark for the integration of Central and South Eastern European countries with the euro area. They show that a careful examination of the fixed effects of the model is crucial for the proper interpretation of the results. The results suggest that trade integration between most new EU member states and the euro area is already relatively advanced, while the remaining Central and Eastern European countries have significant scope to strengthen trade links with the euro area. Copyright © 2008 The Authors. Journal compilation © 2008 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2008.00472.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 12 (2008)
Issue (Month): 3 (08)
Pages: 562-576
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Handle: RePEc:bla:rdevec:v:12:y:2008:i:3:p:562-576

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  1. Oleksandr Shepotylo, 2009. "EU Integration and Trade: a Look from the Outside of the EU Eastern Border?," Discussion Papers 22, Kyiv School of Economics. [Downloadable!]
  2. Fidrmuc, Jan & Fidrmuc, Jarko, 2009. "Foreign Languages and Trade," CEPR Discussion Papers 7228, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Korhonen, Iikka & Fidrmuc , Jarko, 2009. "The impact of the global financial crisis on business cycles in Asian emerging economies," BOFIT Discussion Papers 11/2009, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
    Other versions:
  4. Fidrmuc, Jarko & Batorova, Ivana, 2008. "China in the World Economy: Dynamic Correlation Analysis of Business Cycles," Working Papers RP2008/02, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  5. Jarko Fidrmuc, 2009. "Gravity models in integrated panels," Empirical Economics, Springer, vol. 37(2), pages 435-446, October. [Downloadable!] (restricted)
  6. Bartosova, Dasa & Bartova, Lubica & Fidrmuc, Jarko, 2008. "EU Enlargement Implications on the New Member States Agri-food Trade," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44122, European Association of Agricultural Economists. [Downloadable!]
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