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The Pure Effects of European Integration on Intra-EU Core and Periphery Trade

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  • Peter H. Egger
  • Michael Pfaffermayr

Abstract

This paper analyzes the effects of EU integration on intra-EU trade volumes with a special focus on trade within and between the core and the periphery countries. We find that in all phases of integration core-periphery and intra-periphery growth of trade has experienced stronger positive effects than intra-core trade. An extrapolation of the estimation results suggests that intra-periphery trade and intracore trade will intensify in course of ”typical” additional enlargements at the expense of core-periphery trade. This suggests that either the old core will change or a second, new one may form.
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  • Peter H. Egger & Michael Pfaffermayr, 2013. "The Pure Effects of European Integration on Intra-EU Core and Periphery Trade," The World Economy, Wiley Blackwell, vol. 36(6), pages 701-712, June.
  • Handle: RePEc:bla:worlde:v:36:y:2013:i:6:p:701-712
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    File URL: http://hdl.handle.net/10.1111/twec.12065
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    2. Kemal Türkcan, 2009. "Vertical Intra-Industry Trade: An Empirical Examination of the Austria’s Auto-Parts Industry," FIW Working Paper series 030, FIW.
    3. Dusan Drabik & Jan Pokrivcak & Pavel Ciaian, 2007. "Trade Creation and Diversion in the Enlarged EU Market: Evidence for Agricultural Trade in Slovakia," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(9-10), pages 433-447, October.
    4. Rodolfo Metulini, 2013. "A structural analysis on Gravity of Trade regarding the possibility to remove distance from the model," ERSA conference papers ersa13p520, European Regional Science Association.
    5. Kemal Türkcan, 2011. "Vertical Intra-Industry Trade and Product Fragmentation in the Auto-Parts Industry," Journal of Industry, Competition and Trade, Springer, vol. 11(2), pages 149-186, June.
    6. Drabik, Dusan & Pokrivcak, Jan & Ciaian, Pavel, 2007. "Effects of Tariff Liberalization due to EU Accession on Slovak Agricultural Trade," Working Papers 6820, TRADEAG - Agricultural Trade Agreements.
    7. Miren Lafourcade & Elisenda Paluzie, 2008. "European integration, FDI and the geography of French trade," PSE Working Papers halshs-00586834, HAL.
    8. Kern, Milena & Paetzold, Joerg & Winner, Hannes, 2018. "Cutting Red Tape for Trade in Services," Working Papers in Economics 2018-9, University of Salzburg.
    9. FE, Doukouré Charles, 2011. "Qualité des Institutions et Commerce International: Évidence à Partir des Exportations de l'UEMOA [Institutions Quality and International Trade: Evidence from WAEMU Exports]," MPRA Paper 33333, University Library of Munich, Germany.
    10. Normaz Ismail, 2009. "The Determinant of Foreign Direct Investment in ASEAN: A Semi-Gravity Approach," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(3), pages 710-722, October.
    11. Milena Kern & Jörg Paetzold & Hannes Winner, 2021. "Cutting red tape for trade in services," The World Economy, Wiley Blackwell, vol. 44(10), pages 2857-2885, October.
    12. Roberta De Santis, 2012. "Impact of Environmental Regulations on Trade in the Main EU Countries: Conflict or Synergy?," The World Economy, Wiley Blackwell, vol. 35(7), pages 799-815, July.
    13. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or else? Free trade agreements in the 'enlarged' European Union," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 2(2), pages 245-260, December.
    14. Badi H. Baltagi & Peter Egger & Michael Pfaffermayr, 2014. "Panel Data Gravity Models of International Trade," CESifo Working Paper Series 4616, CESifo.
    15. Jacopo Timini, 2018. "Currency unions and heterogeneous trade effects: the case of the Latin Monetary Union [Bilateral treaties and the most-favored-nation clause: the myth of trade liberalization in the nineteenth cent," European Review of Economic History, Oxford University Press, vol. 22(3), pages 322-348.
    16. Fritz Breuss, 2013. "Die Größe der Kleinen in der EU," WIFO Working Papers 452, WIFO.
    17. Yoke Fong Kong & Richard Kneller, 2016. "Measuring the Impact of China's Export Growth on its Asian Neighbours," The World Economy, Wiley Blackwell, vol. 39(2), pages 195-220, February.
    18. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.
    19. Nebojša Stojčić & Ivan-Damir Anić & Tonći Svilokos, 2021. "The entrepreneurial gains from market integration in the new EU member states," Small Business Economics, Springer, vol. 57(3), pages 1-20, October.
    20. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2020. "Production networks in Europe: A natural experiment of the EU enlargement to the east," Center for European, Governance and Economic Development Research Discussion Papers 390, University of Goettingen, Department of Economics.
    21. Silviano Esteve‐Pérez & Salvador Gil‐Pareja & Rafael Llorca‐Vivero & José Antonio Martínez‐Serrano, 2020. "EMU and trade: A PPML re‐assessment with intra‐national trade flows," The World Economy, Wiley Blackwell, vol. 43(10), pages 2574-2599, October.
    22. Inmaculada Martínez‐Zarzoso & Anca M. Voicu & Martina Vidovic, 2020. "Production networks in Europe: A natural experiment of the European Union enlargement to the east," Review of International Economics, Wiley Blackwell, vol. 28(5), pages 1143-1163, November.
    23. Restrepo-Estrada, Maria Isabel & Tena Junguito, Antonio, 2016. "The roots of regional trade in the Americas 1870 to 1950," IFCS - Working Papers in Economic History.WH 23304, Universidad Carlos III de Madrid. Instituto Figuerola.
    24. Zaenal Mutaqin & Masaru Ichihashi, 2013. "Widening and Deepening Economic Integration Impact on Bilateral Trade in the Eurozone and ASEAN," IDEC DP2 Series 3-3, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    25. Sova, Robert & Albu, Lucian Liviu & Stanciu, Ion & Sova, Anamaria, 2009. "Patterns of Foreign Direct Investment in the New EU Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 6(2), pages 42-51, June.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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