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How Did European Institutional Integration and Intra-European Trade Interact?

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Author Info
Itai Agur
Ettore Dorrucci
Francesco Paolo Mongelli

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Abstract

EMU has spurred an interest on the effects of monetary unions on regional economic integration. This paper investigates the link between intra-European trade growth and the institutional process of regional integration, of which monetary integration was one step. Special attention is paid to the successive EU enlargements. Some causality tests are used to assess the direction and magnitude of impacts. The evidence provided is consistent with the idea that the interaction between regional institutional and trade integration before monetary union matters. Such interaction runs in both directions, although the link from institutional to trade integration dominates. Many open questions remain.

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File URL: http://www.cepii.fr/anglaisgraph/publications/economieinter/rev109/rev109e.htm
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Publisher Info
Article provided by CEPII research center in its journal Economie Internationale.

Volume (Year): (2007)
Issue (Month): 1Q ()
Pages: 107-146
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Handle: RePEc:cii:cepiei:2007-1te

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Related research
Keywords: Optimum currency area; economic and monetary integration; EMU; regional integration; european enlargement;

Find related papers by JEL classification:
E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
F15 - International Economics - - Trade - - - Economic Integration
F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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This page was last updated on 2009-11-22.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.