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Separability and the modelling of international economic integration

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  • Winters, L. Alan

Abstract

Most models of the allocation of imports over suppliers adopt a two-stage (separable) procedure in which a total imports function is estimated prior to the function allocating imports over suppliers. This procedure is tested for five countries' imports of manufactures and found wanting in four of them. A more general model is proposed and estimated. It is used to estimate the effects of U.K. accession to the EEC on her exports to these countries. Exports to the EEC countries rose, but those elsewhere fell. Overall, accession is shown to have worsened the U.K.'s trade balance and gross output of manufactures.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 27 (1985)
Issue (Month): 3 ()
Pages: 335-353

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Handle: RePEc:eee:eecrev:v:27:y:1985:i:3:p:335-353

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  1. Breusch, T S & Pagan, A R, 1980. "The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 239-53, January.
  2. Hickman, Bert G. & Lau, Lawrence J., 1973. "Elasticities of substitution and export demands in a world trade model," European Economic Review, Elsevier, vol. 4(4), pages 347-380, December.
  3. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  4. Michael C. Deppler & Duncan M. Ripley, 1978. "The World Trade Model: Merchandise Trade," IMF Staff Papers, Palgrave Macmillan, vol. 25(1), pages 147-206, March.
  5. Barker, Terry S, 1977. "International Trade and Economic Growth: An Alternative to the Neoclassical Approach," Cambridge Journal of Economics, Oxford University Press, vol. 1(2), pages 153-72, June.
  6. Winters, L Alan, 1984. "British Imports of Manufactures and the Common Market," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 103-18, March.
  7. Winters, L. Alan, 1984. "Separability and the specification of foreign trade functions," Journal of International Economics, Elsevier, vol. 17(3-4), pages 239-263, November.
  8. Fetherston, Martin & Moore, Barry & Rhodes, John, 1979. "EEC Membership and UK Trade in Manufactures: Commentary," Cambridge Journal of Economics, Oxford University Press, vol. 3(4), pages 399-407, December.
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Cited by:
  1. Minoas Koukouritakis, 2005. "EU Accession Effects on the Demand for Manufactures: the Case of Greece," Working Papers 0506, University of Crete, Department of Economics.
  2. Peter Egger & Kurt Kratena, 2001. "A Tale of Competition between Eastern and Southern Europe (Rerum Concordia Discors)," WIFO Working Papers 170, WIFO.
  3. Caroline L. Freund & John McLaren, 1999. "On the dynamics of trade diversion: evidence from four trade blocs," International Finance Discussion Papers 637, Board of Governors of the Federal Reserve System (U.S.).

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