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Integration and Growth in the EU. The Role of Trade

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  • Mª Luz García de la Vega
  • José A. Herce

Abstract

Using spatial econometrics techniques this paper investigates the relationship between trade and growth in the European Union (EU). We find that the EU integration process has promoted trade, especially between close neighbours, and that trade has been the channel of diffusion of interdependent growth, being this fact more important at the beginning of the integrating process than in the latter years. This result illustrates the idea that by enhancing trade, economic integration induces externalities between countries.

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File URL: http://www.fedea.es/pub/Papers/2000/dt2000-20.pdf
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Paper provided by FEDEA in its series Working Papers with number 2000-20.

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Handle: RePEc:fda:fdaddt:2000-20

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  1. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
  2. Jeffrey A. Frankel & David Romer, 1996. "Trade and Growth: An Empirical Investigation," NBER Working Papers 5476, National Bureau of Economic Research, Inc.
  3. Bertola, Giuseppe, 1992. "Models of Economic Integration and Localized Growth," CEPR Discussion Papers 651, C.E.P.R. Discussion Papers.
  4. Ana Goicolea & José A. Herce & Juan J. De Lucio, . "Regional integration and growth: The Spanish case," Working Papers 98-14, FEDEA.
  5. Miller, Marcus H & Spencer, John E, 1977. "The Static Economic Effects of the UK Joining the EEC: A General Equilibrium Approach," Review of Economic Studies, Wiley Blackwell, vol. 44(1), pages 71-93, February.
  6. Grinols, Earl L., 1984. "A thorn in the lion's paw: Has britain paid too much for Common Market membership?," Journal of International Economics, Elsevier, vol. 16(3-4), pages 271-293, May.
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Cited by:
  1. María Garcia-Vega & José A. Herce, 2002. "Interdependent Growth in the EU: The Role of Trade," Economics Working Papers 011, European Network of Economic Policy Research Institutes.
  2. Simón Sosvilla-Rivero, . "La política macroeconómica en economías interdependientes," Working Papers 2001-03, FEDEA.
  3. Simóm Sosvilla-Rivero & Reyes Maroto, . "Regimen duration in the EMR," Working Papers 2001-05, FEDEA.

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