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Intra-European Trade of Manufacturing Goods : An extension of the Gravity Model

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  • Marc VANCAUTEREN

    (WHU-Koblenz)

  • Daniel WEISERBS

    ()
    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

In this paper, we propose and test several extensions of the standard gravity model. This yields a specification that allows for (i) a more flexible income response; (ii) a competitiveness effect with a general and a specific component; and (iii) an alternative and consistent measure of remoteness. Those extensions were found to be significant factors to explain intra-EU trade. Next, we analyze the effect of EU harmonization of technical regulations on domestic and intra-EU trade. We find, at different levels of aggregation of the manufacturing sector, that harmonization of regulations has contributed to more intra-EU trade but, apparently, did not affect the so called border effect.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2005026.

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Length: 36
Date of creation: 01 May 2005
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Handle: RePEc:ctl:louvec:2005026

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Cited by:
  1. Clougherty, Joseph A. & Grajek, Michal, 2012. "International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion," CEPR Discussion Papers 9047, C.E.P.R. Discussion Papers.
  2. Joseph A. Clougherty & Michal Grajek, 2009. "ISO 9000: New form of protectionism or common language in international trade?," ESMT Research Working Papers ESMT-09-006, ESMT European School of Management and Technology.

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