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Trade Integration between Eastern and Western Europe: Policies Follow the Market

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Author Info

  • Piazolo, Daniel

    ()
    (The Kiel Institute of World Economics)

Abstract

This paper examines to what extent Eastern Europe trade reorientation towards the West has been driven by market forces versus policies for regional integration. Hierarchical cluster analysis based on bilateral trade intensity reveals the convergence of regional trade structures to the pre- World- War II pattern. Estimates of the expected trade pattern of Eastern Europe with a grav - ity model predict continuing rising importance of the EU. Furthermore, the assessment of the welfare implications of preferential access to EU markets shows that beneficial effects of trade expansion are likely to outweigh possible distortions. Hence integration policies follow the facts created by the market.

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Bibliographic Info

Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 12 (1997)
Issue (Month): ()
Pages: 259-297

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Handle: RePEc:ris:integr:0050

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Web page: http://econo.sejong.ac.kr/
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Related research

Keywords: Trade; Integration;

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Cited by:
  1. Paul Brenton & Francesca Di Mauro & Matthias Lücke, 1999. "Economic Integration and FDI: An Empirical Analysis of Foreign Investment in the EU and in Central and Eastern Europe," Empirica, Springer, vol. 26(2), pages 95-121, June.
  2. Dominick Salvatore, 2001. "The Problems of Transition, EU Enlargement, and Globalization," Empirica, Springer, vol. 28(2), pages 137-157, June.
  3. Nunnenkamp, Peter, 1997. "Mercosur und EU: institutionalisierte Kooperation als Stimulanz für Handel und Direktinvestitionen?," Open Access Publications from Kiel Institute for the World Economy 1737, Kiel Institute for the World Economy (IfW).
  4. Dieter Schumacher, 2001. "Market Size and Factor Endowment: Explaining Comparative Advantage in Bilateral Trade by Differences in Income and Per Capita Income," Discussion Papers of DIW Berlin 259, DIW Berlin, German Institute for Economic Research.
  5. Dieter Schumacher & Parvati Trübswetter, 2000. "Volume and Comparative Advantage in East-West Trade," Discussion Papers of DIW Berlin 223, DIW Berlin, German Institute for Economic Research.
  6. Piazolo, Daniel, 1997. "Gaining credibility and enhancing economic growth through regional integration: The case for EU membership of Eastern Europe," Kiel Working Papers 837, Kiel Institute for the World Economy.
  7. Piazolo, Daniel, 1998. "Investment behavior in dynamic computable general equilibrium models for transition economies," Kiel Working Papers 879, Kiel Institute for the World Economy.
  8. Andrzej Cieślik & Jan Hagemejer, 2011. "The Effectiveness of Preferential Trade Liberalization in Central and Eastern Europe," Working Papers 2011-21, Faculty of Economic Sciences, University of Warsaw.
  9. Yener Kandogan, 1999. "Lingering effects of central planning on trade? Evidence from current CIS trade patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(3), pages 501-521, September.
  10. Pierluigi Montalbano & Silvia Nenci, 2011. "Are the Emerging Economies a Threat to the Italian Competitiveness?," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
  11. Langhammer, Rolf J., 1998. "European integration deepening and widening: implications for Asia," Kiel Working Papers 892, Kiel Institute for the World Economy.

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