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Regional Integration and International Trade in the Context of EU Eastward Enlargement

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  • Paas, Tiiu
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    Abstract

    The paper aims to explore international trade flows of the countries involved in the EU eastward enlargement processes – the current EU members (EU15) and the candidate countries (CC12). The empirical results of the study allow us to conclude that the behaviour of bilateral trade flows within the countries involved in EU eastward enlargement accords to the normal rules of gravitation, having statistically significant spatial biases caused by the trade relations, between the Baltic Sea Region (BSR) countries (the BSR bias), the border countries (the border bias) and the EU member and candidate countries (the East-West bias). The East-West trade relations are still rather weakly developed and there is a statistically significant difference in international trade patterns between the two groups – the current EU members and the applicant countries. The lessons of the Baltic Sea Region in integrating countries with different economic and political backgrounds and developing bilateral trade relations are valuable in supporting EU eastward enlargement and the reintegration of new member countries into Europe. --

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    File URL: http://econstor.eu/bitstream/10419/19314/1/218.pdf
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    Bibliographic Info

    Paper provided by Hamburg Institute of International Economics (HWWA) in its series HWWA Discussion Papers with number 218.

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    Date of creation: 2003
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    Handle: RePEc:zbw:hwwadp:26223

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    Web page: http://www.econstor.eu/handle/10419/20
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    Related research

    Keywords: EU enlargement; the Baltic Sea Region; integration; international trade; gravity models;

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    Cited by:
    1. Nuno Crespo & Maria Paula Fontoura, 2007. "Integration of CEECs into EU Market: Structural Change and Convergence," Journal of Common Market Studies, Wiley Blackwell, vol. 45, pages 611-632, 09.
    2. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or else? Free trade agreements in the “enlarged” European Union," ISAE Working Papers 52, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    3. Fabry, Nathalie & Zeghni, Sylvain, 2006. "FDI in the New European Neighbours of Southern Europe: a quest of institutions-based attractiveness," MPRA Paper 1109, University Library of Munich, Germany.
    4. Julia Spies & Helena Marques, 2006. "Trade Effects of the Europe Agreements," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 274/2006, Department of Economics, University of Hohenheim, Germany.

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