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Border effects in the enlarged EU area

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Author Info
M. Manchin
Anna Maria Pinna ()

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Abstract

This paper looks at the issue of border effects in the enlarged European Union. We have considered accession countries of different size and other characteristics, i.e. Hungary, Poland, Bulgaria, Romania, Latvia and Cyprus. We have measured the extent to which internal trade exceeds international trade in a set up where controls for other economic determinants of commerce have been considered. In order to avoid inflated border effects, information at the regional level both for CEECs and EU countries has been used to construct a weighted measure of distance both for between-countries and internal distances. Furthermore, in order to separate border effects from impediments to trade due to technical barriers we look at the extent of border effects for sectors grouped according to the approach adopted by the EU to remove technical barriers in the EU. All distance measures have been found negative and significant for all types of products. The border effect coefficients for the harmonic mean have been found consistently smaller, regardless the relevance of technical barriers. Furthermore distance has also been found to be a slightly smaller impediment when using the effective measure. Checking for the presence of technical barriers to trade, our results suggest that the border effects are the largest for old approach products, where we expect to have the most important technical barrier to trade due to complicated harmonization procedures. The ‘other approach’ category has the smallest border effects, while the ‘mixed approach’ products are in between the two previous categories. Our countries of interest would trade with themselves 221 times more in old approach products, while only 24 times more in other approach products.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200301.

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Date of creation: 2003
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Handle: RePEc:cns:cnscwp:200301

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. James E. Anderson & Eric van Wincoop, 2001. "Borders, Trade and Welfare," Boston College Working Papers in Economics 508, Boston College Department of Economics. [Downloadable!]
    Other versions:
  2. Carolyn L. Evans, 2001. "Border effects and the availability of domestic products abroad," Staff Reports 127, Federal Reserve Bank of New York. [Downloadable!]
  3. Holger C. Wolf, 2000. "Intranational Home Bias In Trade," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 555-563, November. [Downloadable!] (restricted)
  4. Keith Head & Thierry Mayer, 2000. "Non-Europe: The magnitude and causes of market fragmentation in the EU," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(2), pages 284-314, June. [Downloadable!] (restricted)
    Other versions:
  5. Russell H. Hillberry, 2002. "Aggregation bias, compositional change, and the border effect," Canadian Journal of Economics, Canadian Economics Association, vol. 35(3), pages 517-530, August. [Downloadable!] (restricted)
  6. Volker Nitsch, 2000. "National borders and international trade: evidence from the European Union," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 1091-1105, November. [Downloadable!] (restricted)
  7. Holger C. Wolf, 1997. "Patterns of Intra- and Inter-State Trade," NBER Working Papers 5939, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Chevassus-Lozza, Emmanuelle & Majkovic, Darja & Persillet, Vanessa & Unguru, Manuela, 2005. "Technical Barriers to Trade in the European Union : Importance for the New EU Members. An Assessment for Agricultural and Food Products," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24621, European Association of Agricultural Economists. [Downloadable!]
  2. Niebuhr, Annekatrin, 2005. "The Impact of EU Enlargement on European Border Regions," Discussion Paper Series 26384, Hamburg Institute of International Economics. [Downloadable!]
  3. Yener Kandogan, 2006. "Falling Walls and Lifting Curtains: Analysis of Border Effects in Transition Countries," William Davidson Institute Working Papers Series 821, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  4. Gerardo Marletto, 2006. "La politica dei trasporti come politica per l’innovazione: spunti da un approccio evolutivo," Working Paper CRENoS 200605, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  5. Annekatrin Niebuhr, 2005. "The Impact of EU Enlargement on European Border Regions," ERSA conference papers ersa05p114, European Regional Science Association. [Downloadable!]
  6. OA. Carboni & G. Medda, 2007. "Government Size and the Composition of Public Spending in a Neoclassical Growth Model," Working Paper CRENoS 200701, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
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