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The Effects of European Integration on the Stability of International Trade: A Duration Perspective

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  • Besedes, Tibor

Abstract

I examine the effects European integration has had on intra-EU trade relationships between 1962 and 2005. I find that the stability of intra-EU trade relationships as reflected by their duration has been negatively affected by the persistent integration with duration decreasing and the hazard of trade ceasing increasing. The 1986 and 1995 expansions as well as the creation of the economic union in 1999 reduced the hazard, but not by a large enough magnitude to offset the increased hazard due to earlier integration actions. On the whole, intra-EU relationships have become shorter. This is largely due to the reduction in trade costs brought about by integration, which has enabled a plethora of short and previously cost-prohibitive relationships. This conclusion is supported by the tremendous growth of new relationships under the various incarnations of the European Union.

Suggested Citation

  • Besedes, Tibor, 2014. "The Effects of European Integration on the Stability of International Trade: A Duration Perspective," MPRA Paper 59626, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:59626
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    References listed on IDEAS

    as
    1. Tibor Besedeš & Thomas J. Prusa, 2013. "Antidumping and the Death of Trade," NBER Working Papers 19555, National Bureau of Economic Research, Inc.
    2. Volker Nitsch, 2009. "Die another day: duration in German import trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(1), pages 133-154, April.
    3. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    4. Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, vol. 43(3), pages 1083-1107, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    eu enlargement; economic integration; duration of trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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