Implicit Trade Costs and European Single Market Enlargement
AbstractA major current issue in the economics of trade blocs is where the bloc is not just a customs union, but also incorporates substantial regulatory harmonisation or mutual recognition elements. The derivation of the costs of non-membership of such a bloc is not straightforward. In this paper I build on the assumption that observed trade pat- terns can be taken to reveal trading costs, and develop a model-consistent Dixit-Stiglitz general equilibrium-based calibration technique as an alternative to gravity methods previously used. I use the model to investigate numerically the likely trade e¤ects of the recent widening of the European Single Market to incorporate several Central and Eastern European Countries.
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Bibliographic InfoPaper provided by Department of Economics, Loughborough University in its series Discussion Paper Series with number 2005-04.
Date of creation: May 2005
Date of revision: May 2005
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Protection; General Equilibrium; European Union.;
Other versions of this item:
- T. Huw Edwards, 2008. "Implicit trade Costs and European single market enlargement," Applied Economics, Taylor & Francis Journals, vol. 40(20), pages 2601-2613.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- F15 - International Economics - - Trade - - - Economic Integration
- F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-22 (All new papers)
- NEP-EEC-2005-10-22 (European Economics)
- NEP-INT-2005-10-22 (International Trade)
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