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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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File URL: http://hdl.handle.net/10.1111/twec.12065
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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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  1. Bayoumi, Tamim & Eichengreen, Barry, 1995. "Is Regionalism Simply a Diversion? Evidence from the Evolution of the EC and EFTA," CEPR Discussion Papers 1294, C.E.P.R. Discussion Papers.
  2. Jeffrey A. Frankel & Ernesto Stein & Shang-Jin Wei, 1996. "Regional Trading Arrangement: Natural or Super-Natural?," NBER Working Papers 5431, National Bureau of Economic Research, Inc.
  3. 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.
  4. Jeffrey A. Frankel & Ernesto Stein & Shang-Jin Wei, 1993. "Continental Trading Blocs: Are They Natural, or Super-Natural?," NBER Working Papers 4588, National Bureau of Economic Research, Inc.
  5. Paul Krugman, 1991. "The move toward free trade zones," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 7-58.
  6. Sapir, Andre, 1998. "The political economy of EC regionalism," European Economic Review, Elsevier, vol. 42(3-5), pages 717-732, May.
  7. I-Hui Cheng & Howard J. Wall, 2005. "Controlling for heterogeneity in gravity models of trade and integration," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 49-63.
  8. Paul Krugman, 1989. "Is Bilateralism Bad?," NBER Working Papers 2972, National Bureau of Economic Research, Inc.
  9. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March.
  10. 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.
  11. 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.
  12. Anne O. Krueger, 1999. "Trade Creation and Trade Diversion Under NAFTA," NBER Working Papers 7429, National Bureau of Economic Research, Inc.
  13. 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.
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Cited by:
  1. 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.
  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. 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.
  4. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or else? Free trade agreements in the “enlarged” European Union," ISAE Working Papers 52, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
  5. 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.
  6. 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.
  7. 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.
  8. 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).
  9. Kemal Türkcan, 2009. "Vertical Intra-Industry Trade: An Empirical Examination of the Austria’s Auto-Parts Industry," FIW Working Paper series 030, FIW.
  10. 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.
  11. repec:hal:wpaper:halshs-00586834 is not listed on IDEAS

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