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Pattern of trade and European economic integration

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  • Fabien Rondeau

Abstract

In this article, the degree of integration between European countries is linked to the evolution of the pattern of trade. Evolution of the long-run sensitivity between European outputs is estimated by recursive Fully-Modified Ordinary Least Squares (FM-OLS) and compared to a recursive index of intra-industry trade. Significant correlations are found between integration and intra-industry trade share: positive for most countries but negative for others. The explanatory variable seems to be the initial intra-industry trade share.

Suggested Citation

  • Fabien Rondeau, 2007. "Pattern of trade and European economic integration," Applied Economics Letters, Taylor & Francis Journals, vol. 14(14), pages 1013-1018.
    • Handle: RePEc:taf:apeclt:v:14:y:2007:i:14:p:1013-1018
    DOI: 10.1080/13504850600706578
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