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The Pure Effects of European Integration on Intra-EU Core and Periphery Trade

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  • Peter H. Egger
  • Michael Pfaffermayr

Abstract

This paper analyzes the effects of EU integration on intra-EU trade volumes with a special focus on trade within and between the core and the periphery countries. We find that in all phases of integration core-periphery and intra-periphery growth of trade has experienced stronger positive effects than intra-core trade. An extrapolation of the estimation results suggests that intra-periphery trade and intracore trade will intensify in course of ”typical” additional enlargements at the expense of core-periphery trade. This suggests that either the old core will change or a second, new one may form.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

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

Volume (Year): 36 (2013)
Issue (Month): 6 (06)
Pages: 701-712

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Handle: RePEc:bla:worlde:v:36:y:2013:i:6:p:701-712

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References

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  1. Anne O. Krueger, 1999. "Trade Creation and Trade Diversion Under NAFTA," NBER Working Papers 7429, National Bureau of Economic Research, Inc.
  2. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-53, February.
  3. Tamim Bayoumi & Barry Eichengreen, 1995. "Is Regionalism Simply a Diversion? Evidence From the Evolution of the EC and EFTA," NBER Working Papers 5283, National Bureau of Economic Research, Inc.
  4. Jeffrey A. Frankel, Ernesto Stein, and Shang-Jin Wei., 1996. "Regional Trading Arrangements: Natural or Super-Natural?," Center for International and Development Economics Research (CIDER) Working Papers C96-059, University of California at Berkeley.
  5. Aitken, Norman D, 1973. "The Effect of the EEC and EFTA on European Trade: A Temporal Cross-Section Analysis," American Economic Review, American Economic Association, vol. 63(5), pages 881-92, December.
  6. Paul Krugman, 1991. "The move toward free trade zones," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 7-58.
  7. André Sapir, 1998. "The political economy of EC regionalism," ULB Institutional Repository 2013/8156, ULB -- Universite Libre de Bruxelles.
  8. Bergstrand, Jeffrey H, 1990. "The Heckscher-Ohlin-Samuelson Model, the Linder Hypothesis and the Determinants of Bilateral Intra-industry Trade," Economic Journal, Royal Economic Society, vol. 100(403), pages 1216-29, December.
  9. Soloaga, Isidro & Winters, L. Alan, 1999. "Regionalism in the Nineties: What Effect on Trade?," CEPR Discussion Papers 2183, C.E.P.R. Discussion Papers.
  10. Jeffrey A. Frankel & Ernesto Stein & Shang-Jin Wei, 1998. "Continental Trading Blocs: Are They Natural or Supernatural?," NBER Chapters, in: The Regionalization of the World Economy, pages 91-120 National Bureau of Economic Research, Inc.
  11. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
  12. I-Hui Cheng & Howard J. Wall, 2004. "Controlling for heterogeneity in gravity models of trade and integration," Working Papers 1999-010, Federal Reserve Bank of St. Louis.
  13. Paul Krugman, 1989. "Is Bilateralism Bad?," NBER Working Papers 2972, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Kemal Türkcan, 2009. "Vertical Intra-Industry Trade: An Empirical Examination of the Austria’s Auto-Parts Industry," FIW Working Paper series 030, FIW.
  2. Dusan Drabik & Jan Pokrivcak & Pavel Ciaian, 2007. "Trade Creation and Diversion in the Enlarged EU Market: Evidence for Agricultural Trade in Slovakia," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(9-10), pages 433-447, October.
  3. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or else? Free trade agreements in the 'enlarged' European Union," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 2(2), pages 245-260, December.
  4. Sova, Robert & Albu, Lucian Liviu & Stanciu, Ion & Sova, Anamaria, 2009. "Patterns of Foreign Direct Investment in the New EU Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 6(2), pages 42-51, June.
  5. Sergio de Nardis & Roberta De Santis & Claudio Vicarelli, 2007. "The Euro's Effect on Trade on a Dynamic Setting," ISAE Working Papers 80, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
  6. de santis, roberta, 2011. "Impact of environmental regulations on trade in the main EU countries: conflict or synergy?," MPRA Paper 37756, University Library of Munich, Germany.
  7. repec:hal:wpaper:halshs-00586834 is not listed on IDEAS
  8. Kemal Türkcan, 2011. "Vertical Intra-Industry Trade and Product Fragmentation in the Auto-Parts Industry," Journal of Industry, Competition and Trade, Springer, vol. 11(2), pages 149-186, June.
  9. FE, Doukouré Charles, 2011. "Qualité des Institutions et Commerce International: Évidence à Partir des Exportations de l'UEMOA
    [Institutions Quality and International Trade: Evidence from WAEMU Exports]
    ," MPRA Paper 33333, University Library of Munich, Germany.
  10. Drabik, Dusan & Pokrivcak, Jan & Ciaian, Pavel, 2007. "Effects of Tariff Liberalization due to EU Accession on Slovak Agricultural Trade," Working Papers 6820, TRADEAG - Agricultural Trade Agreements.
  11. Normaz Ismail, 2009. "The Determinant of Foreign Direct Investment in ASEAN: A Semi-Gravity Approach," Transition Studies Review, Springer, vol. 16(3), pages 710-722, October.

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