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Trade integration of the Central and Eastern European economies with the Euro area

Author

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  • Marinaº Marius-Corneliu

    (Bucharest University of Economic Studies, Department of Economics)

Abstract

The objective of this study is to examine the intensity of the trade linkages between the CEE economies and the countries belonging to the core and periphery of the euro area, in terms of the symmetry of the shocks and costs of the adopting euro currency. The trade represents a transmission channel for the external shocks towards the CEE emerging economies, and thus the macroeconomic evolutions from monetary union will influence the exports of the new EU member countries and their economic growth process. The first part of the study examines the significance of the trade integration based on the theory of the optimum currency areas, making references to the results found in the economic literature. In the second section, I have determined the degree of trade integration with the Euro zone countries, first of all making an analysis for Romania's case and then of the other CEE economies.

Suggested Citation

  • Marinaº Marius-Corneliu, 2013. "Trade integration of the Central and Eastern European economies with the Euro area," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 215-219, May.
    • Handle: RePEc:ovi:oviste:v:xii:y:2012:i:1:p:215-219
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    References listed on IDEAS

    as
    1. Frankel, Jeffrey A & Rose, Andrew K, 1998. "The Endogeneity of the Optimum Currency Area Criteria," Economic Journal, Royal Economic Society, vol. 108(449), pages 1009-1025, July.
    2. Paul de Grauwe & Francesco Paolo Mongelli, 2005. "Endogeneities of Optimum Currency Areas: What brings Countries Sharing a Single Currency Closer together?," Working Papers de Economia (Economics Working Papers) 29, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.
    3. Matthieu Bussière & Jarko Fidrmuc & Bernd Schnatz, 2005. "Trade Integration of Central and Eastern European Countries: Lessons from a Gravity Model," Working Papers 105, Oesterreichische Nationalbank (Austrian Central Bank).
    4. Aura Gabriela SOCOL, 2011. "Costs of Adopting a Common European Currency. Analysis in Terms of the Optimum Currency Areas Theory," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(555)), pages 89-100, February.
    5. Cristian Socol & Andrei Hrebenciuc, 2008. "Effects of International Financial Turbulences Extension on the Romanian Economy. Prevention Solutions," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 8(8(525)), pages 31-42, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    trade integration; Euro area; business cycle synchronization; external shocks;
    All these keywords.

    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

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