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CEECS integration into regional production networks. Trade effects of EU-accesion

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  • Inmaculada Martínez-Zarzoso

    ()
    (Economics Department, Universitat Jaume I, Castellón, Spain)

  • Anca M. Voicu

    ()
    (Department of Economics Rollins College)

  • Martina Vidovic

    ()
    (Department of Economics Rollins College)

Abstract

We estimate a gravity model that incorporates the extensive margin of trade and accounts for firm heterogeneity to evaluate the effect of the EU-accession on CEECs trade in intermediates and final goods for the period 1999-2009. The importance of production networks is captured by including imports of intermediates as a determinant of a country’s exports of final goods. We find a positive and significant effect of the EU-accession on CEECs trade in intermediate and final goods. Hence, the elimination of “behind the border” trade barriers has a positive impact on increasing not only trade volumes but also trade varieties.

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Bibliographic Info

Paper provided by Economics Department, Universitat Jaume I, Castellón (Spain) in its series Working Papers with number 2012/04.

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Length: 33 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:jau:wpaper:2012/04

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Keywords: gravity equation; panel data; production networks; economic integration; trade flows.;

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  1. Prema-chandra Athukorala & Nobuaki Yamashita, 2005. "Production Fragmentation and Trade Integration: East Asia in a Global Context," Departmental Working Papers 2005-07, The Australian National University, Arndt-Corden Department of Economics.
  2. Kei-Mu Yi, 2000. "Can vertical specialization explain the growth of world trade?," Staff Reports 96, Federal Reserve Bank of New York.
  3. Cecília Hornok, 2010. "Trade-Enhancing EU Enlargement and the Resurgence of East-East Trade," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 79-94.
  4. Prema-chandra Athukorala, 2005. "Product Fragmentation and Trade Patterns in East Asia," Asian Economic Papers, MIT Press, vol. 4(3), pages 1-27, October.
  5. repec:jet:dpaper:dpaper280 is not listed on IDEAS
  6. Kimura, Fukunari & Takahashi, Yuya & Hayakawa, Kazunobu, 2007. "Fragmentation and parts and components trade: Comparison between East Asia and Europe," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 23-40, February.
  7. Baldwin, Richard & Taglioni, Daria, 2006. "Gravity for Dummies and Dummies for Gravity Equations," CEPR Discussion Papers 5850, C.E.P.R. Discussion Papers.
  8. Götz Zeddies, 2011. "Determinants of international fragmentation of production in European Union," Empirica, Springer, vol. 38(4), pages 511-537, November.
  9. Götz Zeddies, 2007. "Determinants of International Fragmentation of Production in the European Union," IWH Discussion Papers 15, Halle Institute for Economic Research.
  10. Hartmut Egger & Peter Egger, 2005. "The Determinants of EU Processing Trade," The World Economy, Wiley Blackwell, vol. 28(2), pages 147-168, 02.
  11. Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles 3228230, Harvard University Department of Economics.
  12. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
  13. Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2001. "Patterns and determinants of international fragmentation of production: Evidence from outward processing trade between the EU and Central Eastern European countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 80-104, March.
  14. Alessandro Antimian & Valeria Costantini, 2013. "Trade performances and technology in the enlarged European Union," Journal of Economic Studies, Emerald Group Publishing, vol. 40(3), pages 355-389, May.
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