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Trade performances and technology in the enlarged European Union

Author

Listed:
  • Alessandro Antimiani
  • Valeria Costantini

Abstract

Purpose - 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.

Suggested Citation

  • Alessandro Antimiani & Valeria Costantini, 2013. "Trade performances and technology in the enlarged European Union," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 40(3), pages 355-389, July.
    • Handle: RePEc:eme:jespps:v:40:y:2013:i:3:p:355-389
    DOI: 10.1108/01443581311283961
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    Citations

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    Cited by:

    1. Inmaculada Martínez-Zarzoso & Martina Vidovic & Anca M. Voicu, 2014. "EU-Accession Effects on Sectoral Trade: A Helpman-Melitz-Rubinstein Approach with Panel Data," CESifo Working Paper Series 4903, CESifo.
    2. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2020. "Production networks in Europe: A natural experiment of the EU enlargement to the east," University of Göttingen Working Papers in Economics 390, University of Goettingen, Department of Economics.
    3. 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.
    4. Claire Brunel & Thomas Zylkin, 2022. "Do cross‐border patents promote trade?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 379-418, February.
    5. Antimiani, Alessandro & Cernat, Lucian, 2017. "Liberalizing global trade in Mode 5 services: how much is worth?," Conference papers 332872, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Timo Baas & Herbert Brücker, 2011. "EU Eastern Enlargement: The Benefits from Integration and Free Labour Movement," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(02), pages 44-51, July.
    7. Valeria Costantini & Francesco Crespi, 2015. "European enlargement policy, technological capabilities and sectoral export dynamics," The Journal of Technology Transfer, Springer, vol. 40(1), pages 25-69, February.
    8. repec:ces:ifodic:v:9:y:2011:i:2:p:16134093 is not listed on IDEAS
    9. Inmaculada Martinez-Zarzoso & Anca Voicu & Martina Vidovic, 2015. "Central East European Countries’ accession into the European Union: role of extensive margin for trade in intermediate and final goods," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(4), pages 825-844, November.
    10. Timo Baas & Herbert Brücker, 2011. "EU Eastern Enlargement: The Benefits from Integration and Free Labour Movement," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(2), pages 44-51, 07.
    11. Nina Bockova, 2015. "Research, Development And Innovations In Czech Manufacture Of Electronic Products," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 10(4), pages 163-180, December.
    12. Inmaculada Martínez‐Zarzoso & Anca M. Voicu & Martina Vidovic, 2020. "Production networks in Europe: A natural experiment of the European Union enlargement to the east," Review of International Economics, Wiley Blackwell, vol. 28(5), pages 1143-1163, November.

    More about this item

    Keywords

    EU enlargement; Gravity model; International trade; Economic integration; Technological innovation; European Union; Trade; Innovation;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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