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Economic integration in a multicone world?

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  • Volpe Martincus, Christian
  • Pédussel Wu, Jennifer
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    Abstract

    This paper examines whether economic integration favors countries' convergence into a common cone of diversification. We analyze the manufacturing specialization patterns for a sample of 19 current and potential European Union countries over the period 1963-1998, and assess the impact of integration on their evolution. We perform year-by-year threshold estimations of Rybczynski relationships to identify the diversification cones and then estimate discrete choice models to investigate whether membership in the European Union is associated with a higher probability of being in a same cone. Economic integration in Europe is found to have promoted convergence from lower to higher diversification cones. --

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    File URL: http://econstor.eu/bitstream/10419/39452/1/502457767.pdf
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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 07-2005.

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    Date of creation: 2005
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    Handle: RePEc:zbw:zeiwps:b072005

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    Related research

    Keywords: Multiple Diversification Cones; Convergence; European Integration; Threshold Estimation; Dynamic Probit Models;

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    1. Ben-David, Dan, 1996. "Trade and convergence among countries," Journal of International Economics, Elsevier, vol. 40(3-4), pages 279-298, May.
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    Cited by:
    1. Catia Batista & Jacques Potin, 2007. "Stages of diversification and specialization in an Heckscher-Ohlin world, 1976-2000," Economics Series Working Papers 356, University of Oxford, Department of Economics.

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