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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.

Suggested Citation

  • Mª Luz García de la Vega & José A. Herce, "undated". "Integration and Growth in the EU. The Role of Trade," Working Papers 2000-20, FEDEA.
  • Handle: RePEc:fda:fdaddt:2000-20
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    References listed on IDEAS

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    1. Prewo, Wilfried E., 1974. "Integration effects in the EEC : An attempt at quantification in a general equilibrium framework," European Economic Review, Elsevier, vol. 5(4), pages 379-405, December.
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    4. Ana Goicolea & José A. Herce & Juan J. De Lucio, "undated". "Regional integration and growth: The Spanish case," Working Papers 98-14, FEDEA.
    5. Jeffrey A. Frankel & David Romer, 1996. "Trade and Growth: An Empirical Investigation," NBER Working Papers 5476, National Bureau of Economic Research, Inc.
    6. Marcus H. Miller & John E. Spencer, 1977. "The Static Economic Effects of the UK joining the EEC: A General Equilibrium Approach," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(1), pages 71-93.
    7. 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:

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    3. Girum Dagnachew Abate, 2016. "On the Link between Volatility and Growth: A Spatial Econometrics Approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(1), pages 27-45, March.

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