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Economic integration and similarity in trade structures

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  • Luca Benedictis

    ()

  • Lucia Tajoli

    ()

Abstract

In this paper we look at the similarity of trade structures in an integrating area. In particular, we analyse the export flows toward the EU market of four of the so-called “accession countries" of Central and Eastern Europe by comparing them to those of the pre-2004 members of the European Union (EU15). From a methodological point of view, we evaluate the appropriateness of different classes of similarity indices - correlation indices and distance metrics - opting for the use of the Bray-Curtis semi-metric to assess changes in the trade similarity. We examine its evolution over time - from 1989 to 2001 - considering both self-similarity (how the export composition of a CEEC has changed with respect to the beginning of the transition process) and EU-similarity (if and how the export composition of a CEEC has changed with respect to the EU15 export composition). Finally, we use EU-similarity matrices to test if the dynamics of sectoral distribution of total exports of Poland, Hungary, Romania, and Bulgaria to the EU is related to the role acquired by processed trade in the 1990s. Using a nonparametric Mantel test we give evidence that: (1) processed trade is crucial in explaining changes in the overall structure of exports of transition countries, and (2) that greater economic integration in terms of trade flows and processing trade does not always lead to greater export similarity between the CEECs and the EU15 member States.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Springer in its journal Empirica.

Volume (Year): 34 (2007)
Issue (Month): 2 (April)
Pages: 117-137

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Handle: RePEc:kap:empiri:v:34:y:2007:i:2:p:117-137

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Web page: http://www.springerlink.com/link.asp?id=100261

Related research

Keywords: EU; CEECs; Transition; Similarity; Nonparametrics; F3; F42;

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References

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Citations

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Cited by:
  1. Diana Petkova, 2006. "Cultural Diversity in People’s Attitudes and Perceptions," Working Papers 2006.56, Fondazione Eni Enrico Mattei.
  2. Aleksandra Parteka, 2013. "The Evolving Structure Of Polish Exports (1994-2010) – Diversification Of Products And Trade Partners," GUT FME Working Paper Series A 10, Faculty of Management and Economics, Gdansk University of Technology.
  3. Mahvash Saeed Qureshi & Guanghua Wan, 2008. "Trade Expansion of China and India: Threat or Opportunity?," The World Economy, Wiley Blackwell, vol. 31(10), pages 1327-1350, October.
  4. Nuno Crespo & Nádia Simões & José Duarte, 2013. "Competition in tourism arrivals – A multidimensional index of geographical structural similarity," Working Papers Series 2 13-05, ISCTE-IUL, Business Research Unit (BRU-IUL).
  5. John J. Betancur, 2006. "From Outsiders to On-Paper Equals to Cultural Curiosities? The Trajectory of Diversity in the USA," Working Papers 2006.57, Fondazione Eni Enrico Mattei.
  6. Suppanunta Romprasert, 2013. "Asian Economic Community with Selected Macroeconomic Variables for Exports Sustainability," International Journal of Economics and Financial Issues, Econjournals, vol. 3(3), pages 602-605.
  7. Nuno Crespo & Maria Paula Fontoura, 2009. "Determinant factors of structural similarity at the regional level: evidence from Portugal," Working Papers Department of Economics 2009/28, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  8. Alessia Lo Turco & Aleksandra Parteka, 2009. "The EU enlargement and domestic employment," Economics Bulletin, AccessEcon, vol. 29(3), pages 2202-2217.
  9. Alessandro Antimiani & Anna Carbone & Valeria Costantini & Roberto Henke, 2011. "Agri-food exports and the enlarged european union," Departmental Working Papers of Economics - University 'Roma Tre' 0134, Department of Economics - University Roma Tre.
  10. Mahvash Saeed Qureshi, 2008. "Africa's Oil Abundance and External Competitiveness," IMF Working Papers 08/172, International Monetary Fund.
  11. Alessia Lo Turco & Aleksandra Parteka, 2009. "Empirical investigation on labour market interactions in an enlarged Europe," Bank i Kredyt, National Bank of Poland, Economic Institute, vol. 40(1), pages 87-105.
  12. Claudiu T. Albulescu, 2011. "Economic and Financial Integration of CEECs: The Impact of Financial Instability," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 5(1), pages 027-045, March.

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