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Integration, Disintegration and Trade in Europe: Evolution of Trade Relations During the 1990s

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Author Info
Jarko Fidrmuc () (Oesterreichische Nationalbank)
Jan Fidrmuc () (Center for European Integration Studies (ZEI), University of Bonn)

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Abstract

The gravity model of trade is used to assess the economic consequences of new borders, which arose in the wake of break-ups of multinational federations in Eastern Europe. The intensity of trade relations among the constituent parts of Czechoslovakia, Soviet Union and the Baltics was very high around the time of disintegration, exceeding the normal level of trade approximately 40 times. Disintegration has been followed by a sharp fall in trade intensity. On the other hand, the trade liberalization between East and West has lead to gradual normalization of trade relations, and liberalization within CEFTA has reversed the fall in trade intensity among Central European countries.

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Publisher Info
Paper provided by Oesterreichische Nationalbank (Austrian Central Bank) in its series Working Papers with number 42.

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Length: 39 pages
Date of creation: 01 Jun 2000
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Handle: RePEc:onb:oenbwp:42

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Related research
Keywords: Gravity Model International Trade European Integration Disintegration

Other versions of this item:

Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration
F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  2. Maurel, M., 1995. "The Cost of Desintegration of the ex Autro-Hungarian Empire in the Inter-War Period," DELTA Working Papers 95-25, DELTA (Ecole normale supérieure).
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    Other versions:
  4. Shang-Jin Wei, 1996. "Intra-National versus International Trade: How Stubborn are Nations in Global Integration?," NBER Working Papers 5531, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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    Other versions:
  6. Yener Kandogan, 1999. "Lingering effects of central planning on trade? Evidence from current CIS trade patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(3), pages 501-521, September. [Downloadable!] (restricted)
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    Other versions:
  10. Fidrmuc, Jan & Horvath, Julius & Fidrmuc, Jarko, 1999. "Stability of Monetary Unions: Lessons from the Break-up of Czechoslovakia," Transition Economics Series 10, Institute for Advanced Studies. [Downloadable!]
    Other versions:
  11. Fidrmuc, Jarko, 1999. "Trade Diversion in the 'Left-Outs' in the Eastward Enlargement of the European Union," Transition Economics Series 8, Institute for Advanced Studies. [Downloadable!]
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  15. repec:fth:michin:382 is not listed on IDEAS
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    Other versions:
  18. Rudiger Dornbusch, 1992. "Monetary Problems of Post-Communism: Lessons from the End of the Austro-Hungarian Empire," NBER Reprints 1765, National Bureau of Economic Research, Inc.
    Other versions:
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