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Separability and the modelling of international economic integration

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  • Winters, L. Alan

Abstract

Most models of the allocation of imports over suppliers adopt a two-stage (separable) procedure in which a total imports function is estimated prior to the function allocating imports over suppliers. This procedure is tested for five countries' imports of manufactures and found wanting in four of them. A more general model is proposed and estimated. It is used to estimate the effects of U.K. accession to the EEC on her exports to these countries. Exports to the EEC countries rose, but those elsewhere fell. Overall, accession is shown to have worsened the U.K.'s trade balance and gross output of manufactures.

Suggested Citation

  • Winters, L. Alan, 1985. "Separability and the modelling of international economic integration," European Economic Review, Elsevier, vol. 27(3), pages 335-353.
  • Handle: RePEc:eee:eecrev:v:27:y:1985:i:3:p:335-353
    DOI: 10.1016/S0014-2921(85)80019-2
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    References listed on IDEAS

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    1. Winters, L. Alan, 1984. "Separability and the specification of foreign trade functions," Journal of International Economics, Elsevier, vol. 17(3-4), pages 239-263, November.
    2. Hickman, Bert G. & Lau, Lawrence J., 1973. "Elasticities of substitution and export demands in a world trade model," European Economic Review, Elsevier, vol. 4(4), pages 347-380, December.
    3. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 239-253.
    4. Winters, L Alan, 1984. "British Imports of Manufactures and the Common Market," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 103-118, March.
    5. Fetherston, Martin & Moore, Barry & Rhodes, John, 1979. "EEC Membership and UK Trade in Manufactures: Commentary," Cambridge Journal of Economics, Oxford University Press, vol. 3(4), pages 399-407, December.
    6. Michael C. Deppler & Duncan M. Ripley, 1978. "The World Trade Model: Merchandise Trade," IMF Staff Papers, Palgrave Macmillan, vol. 25(1), pages 147-206, March.
    7. Barker, Terry S, 1977. "International Trade and Economic Growth: An Alternative to the Neoclassical Approach," Cambridge Journal of Economics, Oxford University Press, vol. 1(2), pages 153-172, June.
    8. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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    Cited by:

    1. Tullaya Boonsaeng & Michael K. Wohlgenant, 2009. "A Dynamic Approach to Estimating and Testing Separability in U.S. Demand for Imported and Domestic Meats," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 139-157, March.
    2. Koukouritakis, Minoas, 2005. "EU Accession Effects on the Demand for Manufactures: the Case of Greece," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 58(4), pages 471-488.
    3. Peter Egger & Kurt Kratena, 2001. "A Tale of Competition between Eastern and Southern Europe (Rerum Concordia Discors)," WIFO Working Papers 170, WIFO.
    4. Caroline L. Freund & John McLaren, 1999. "On the dynamics of trade diversion: evidence from four trade blocs," International Finance Discussion Papers 637, Board of Governors of the Federal Reserve System (U.S.).

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