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Integration, disintegration and trade in Europe: Evolution of trade relations during the 1990s

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  • Fidrmuc, Jarko
  • Fidrmuc, Jan

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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Bibliographic Info

Paper provided by ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 03-2000.

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Date of creation: 2000
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Handle: RePEc:zbw:zeiwps:b032000

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Keywords: Gravity Model; International Trade; European Integration; Disintegration;

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References

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Cited by:
  1. Richard Nahuis, 2002. "One size fits all? Accession to the internal market; an industry level assessment of EU enlargement," CPB Discussion Paper 14, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Chevassus-Lozza, Emmanuelle & Latouche, Karine & Majkovic, Darja & Unguru, Manuela, 2008. "The importance of EU-15 borders for CEECs agri-food exports: The role of tariffs and non-tariff measures in the pre-accession period," Food Policy, Elsevier, Elsevier, vol. 33(6), pages 595-606, December.
  3. Kurmanalieva, Elvira & Vinokurov, Evgeny, 2011. "Holding together or falling apart:Results of gravity equation of the CIS trade," MPRA Paper 32003, University Library of Munich, Germany.

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