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European Integration and Manufactures Import Demand: An Empirical Investigation of Ten European Countries

Author

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  • Barrell Ray

    (National Institute of Economic and Social Research,London, United Kingdom of Great Britain and Northern Ireland)

  • Willem te Velde Dirk

    (National Institute of Economic and Social Research,London, United Kingdom of Great Britain and Northern Ireland)

Abstract

This paper studies import demand in ten European countries over the period 1970±95, and our objective is to investigate whether the process of European integration has affected imports. We provide evidence for parametric change in traditional import demand equations, suggesting that important variables or structural factors are missing from the long-run equations. We present equations based on new trade theory, where effects of technology and foreign direct investment are present. Once we include these there is little evidence that the creation of the Single Market has directly increased aggregated imports in European countries.

Suggested Citation

  • Barrell Ray & Willem te Velde Dirk, 2002. "European Integration and Manufactures Import Demand: An Empirical Investigation of Ten European Countries," German Economic Review, De Gruyter, vol. 3(3), pages 263-294, August.
  • Handle: RePEc:bpj:germec:v:3:y:2002:i:3:p:263-294
    DOI: 10.1111/1468-0475.00060
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    Cited by:

    1. Geoffrey Ducanes & Marie Anne Cagas & Duo Qin & Pilipinas Quising & Mohammad Abdur Razzaque, 2006. "Macroeconomic Effects of Fiscal Policies: Empirical Evidence from Bangladesh, China, Indonesia and the Philippines," Working Papers 564, Queen Mary University of London, School of Economics and Finance.
    2. Carmen Fillat-Castej—n & Joseph Francois & Julia Woerz, 2008. "TRADE THROUGH FDI: investing in services," IIDE Discussion Papers 20080502, Institue for International and Development Economics.
    3. Kamps, Annette & Beck, Roland, 2009. "Petrodollars and imports of oil exporting countries," Working Paper Series 1012, European Central Bank.
    4. Sabine Stephan, 2007. "A re-assessment of German import demand," IMK Working Paper 08-2007, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    5. Stirböck, Claudia, 2006. "How strong is the impact of exports and other demand components on German import demand? Evidence from euro-area and non-euro-area imports," Discussion Paper Series 1: Economic Studies 2006,39, Deutsche Bundesbank.
    6. Makram El‐Shagi & William C. Sawyer & Kiril Tochkov, 2022. "The income elasticity of import demand: A meta‐survey," Pacific Economic Review, Wiley Blackwell, vol. 27(1), pages 18-41, February.
    7. Barrell, Ray & Becker, Bettina & Byrne, Joseph & Gottschalk, Sylvia & Hurst, Ian & van Welsum, Desiree, 2004. "Macroeconomic policy in Europe: experiments with monetary responses and fiscal impulses," Economic Modelling, Elsevier, vol. 21(5), pages 877-931, September.
    8. Iana Liadze & Ray Barrell & Dawn Holland, 2007. "Fiscal Spillovers and Trade Relations in Europe," National Institute of Economic and Social Research (NIESR) Discussion Papers 289, National Institute of Economic and Social Research.
    9. Elena Bobeica & Olegs Tkacevs & Styliani Christodoulopoulou, 2016. "The role of price and cost competitiveness for intra- and extra-euro area trade of euro area countries," Working Papers 2016/04, Latvijas Banka.
    10. Beck, Martin & Winker, Peter, 2004. "Modeling spillovers and feedback of international trade in a disequilibrium framework," Economic Modelling, Elsevier, vol. 21(3), pages 445-470, May.
    11. Desirée Van Welsum, 2004. "In Search of ‘Offshoring’: Evidence from U.S. Imports of Services," Birkbeck Working Papers in Economics and Finance 0402, Birkbeck, Department of Economics, Mathematics & Statistics.
    12. Oriol Carreras & Simon Kirby & Iana Liadze & Rebecca Piggott, 2016. "Fiscal Policy Spillovers," National Institute of Economic and Social Research (NIESR) Discussion Papers 468, National Institute of Economic and Social Research.
    13. Barrell, Ray & Pina, Alvaro M., 2004. "How important are automatic stabilisers in Europe? A stochastic simulation assessment," Economic Modelling, Elsevier, vol. 21(1), pages 1-35, January.
    14. Fukumoto, Mayumi, 2012. "Estimation of China's disaggregate import demand functions," China Economic Review, Elsevier, vol. 23(2), pages 434-444.
    15. Oriol Carreras & Iana Liadze & Simon Kirby & Rebecca Piggott, 2016. "Quantifying Fiscal Multipliers," National Institute of Economic and Social Research (NIESR) Discussion Papers 469, National Institute of Economic and Social Research.

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