Trade performances and technology in the enlarged European Union
AbstractPurpose – The purpose of this paper is to analyse the role of the enlargement process of the European Union as a factor fostering international competitiveness of EU Member States. The paper argues that the economic integration process has reduced the technological gap between old and new EU Member States, and this pattern of technological innovation can partially explain the strong impulse on the export dynamics of European countries. Design/methodology/approach – The paper builds an augmented gravity model by including the role of technological innovation, proxied by the stock of knowledge at the sector level. The authors gather together information on patents applied to international offices and bilateral export flows available from COMTRADE dataset. Findings – By using a dynamic panel data estimator the authors find three main empirical evidences. First, the enlargement process has produced an overall larger positive impact on export flows for new Members than for old ones, and more importantly that sectors with the higher technological content have received the strongest impulse. Second, the augmented gravity model allows shaping the crucial role of technological innovation in fostering export competitiveness. Third, this impact seems to be stronger for old EU Member States than for new ones. Research limitations/implications – The major limitation concerns time span adopted in this work. By expanding the dataset to further years it could be possible to better disentangle the effects also related to the new wave of the EU enlargement. Social implications – The policy implication derived is that the more the new EU Members catch up technologically as a result of the integration process, the more they will benefit in terms of economic development. Originality/value – The major originality of this paper is the construction of an augmented gravity model by including the role of technological innovation, applied to distinguished manufacturing sectors in a dynamic panel setting.
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Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Journal of Economic Studies.
Volume (Year): 40 (2013)
Issue (Month): 3 (May)
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Other versions of this item:
- Alessandro Antimiani & Valeria Costantini, 2010. "Trade performances and technology in the enlarged European Union," Departmental Working Papers of Economics - University 'Roma Tre' 0111, Department of Economics - University Roma Tre.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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- Timo Baas & Herbert Brücker, 2011. "EU Eastern Enlargement: The Benefits from Integration and Free Labour Movement," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 9(2), pages 44-51, 07.
- Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2011.
"CEECs Integration into Regional Production Networks. Trade Effects of EU-Accession,"
Proceedings of the German Development Economics Conference, Berlin 2011
55, Verein für Socialpolitik, Research Committee Development Economics.
- Inmaculada Martínez-Zarzoso & Anca M. Voicu & Martina Vidovic, 2012. "CEECS integration into regional production networks. Trade effects of EU-accesion," Working Papers 2012/04, Economics Department, Universitat Jaume I, Castellón (Spain).
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