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The Determinants of EU Processing Trade

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  • Hartmut Egger
  • Peter Egger

Abstract

This paper assesses the determinants of European outward and inward processing trade. Thereby, it distinguishes between size, relative factor endowment, (other) cost factors and infrastructure variables. Using a large panel of bilateral processing trade flows of the EU12 countries at the aggregate level over the period 1988-1999, we find that infrastructure variables, relative factor endowments and other cost variables are important determinants for the EU's outward processing trade. Costs also play a key role for the EU's inward processing trade. Copyright Blackwell Publishing Ltd 2005.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 28 (2005)
Issue (Month): 2 (02)
Pages: 147-168

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Handle: RePEc:bla:worlde:v:28:y:2005:i:2:p:147-168

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920

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