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The Impact of Regionalism on Trade in Europe

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  • Alho, Kari E O

    (ETLA Finland)

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    Abstract

    Using the classical gravity model we try to reach a more systematic view than previously in the literature of the impact of regionalism on the intensity of mutual integration through trade in Europe. We find that European trade is significantly influenced by various regional agreements and intensities of trade are strongly asymmetric between the regions. EMU has a positive impact on bilateral trade intensity, and its effect on total European trade of its member countries is also significantly positive. Both between the EU and CEE countries there are, respectively, significant differences with respect to the intensity in this trade.

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    File URL: http://repec.org/res2003/Alho.pdf
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    Bibliographic Info

    Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 3.

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    Date of creation: 04 Jun 2003
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    Handle: RePEc:ecj:ac2003:3

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    Keywords: trade; EU; EMU; CEE; gravity model;

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    Cited by:
    1. Alho, Kari E.O., 2004. "A Gravity Model under Monopolistic Competition," Discussion Papers 962, The Research Institute of the Finnish Economy.

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