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Intra-European Trade of Manufacturing Goods: An Extension of the Gravity Model

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Listed author(s):
  • Mark Vancauteren

    ()

    (Universiteit Hasselt)

  • Daniel Weiserbs

    ()

    (Université catholique de Louvain)

Abstract

In this paper, we propose and test several extensions of the standard gravity model. This yields a specification that allows for (i) a more flexible income response; (ii) a competitiveness effect with a general and a specific component; and (iii) an alternative and consistent measure of remoteness. Those extensions were found to be significant factors to explain intra-EU trade. Next, we analyze the effect of EU harmonization of technical regulations on domestic and intra-EU trade. We find, at different levels of aggregation of the manufacturing sector, that harmonization of regulations has contributed to more intra-EU trade but, apparently, did not affect the so called border effect.

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File URL: http://www.era.org.tr/makaleler/3100020.pdf
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Article provided by Econometric Research Association in its journal International Econometric Review.

Volume (Year): 3 (2011)
Issue (Month): 1 (April)
Pages: 1-24

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Handle: RePEc:erh:journl:v:3:y:2011:i:1:p:1-24
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Keywords: Trade; EU Countries; Gravity Equation; Border Effects.;

Other versions of this item:

Find related papers by JEL classification:
  • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
  • F14 - International Economics - - Trade - - - Empirical Studies of Trade
  • F15 - International Economics - - Trade - - - Economic Integration

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Cited by:

  1. Clougherty, Joseph A. & Grajek, Michał, 2014. "International standards and international trade: Empirical evidence from ISO 9000 diffusion," International Journal of Industrial Organization, Elsevier, vol. 36(C), pages 70-82.
  2. Joseph A. Clougherty & Michal Grajek, 2009. "ISO 9000: New form of protectionism or common language in international trade?," ESMT Research Working Papers ESMT-09-006, ESMT European School of Management and Technology.
  3. Foletti, Liliana & Shingal, Anirudh, 2014. "Trade effects of MRL harmonization in the EU," Papers 720, World Trade Institute.
  4. Irwan Shah Zainal Abidin & Muhammad Haseeb & Rabiul Islam, 2016. "Regional Integration of the Association of Southeast Asian Nations Economic Community: An Analysis of Malaysia - Association of Southeast Asian Nations Exports," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 646-652.
  5. Ederington,Josh & Ruta,Michele, 2016. "Non-tariff measures and the world trading system," Policy Research Working Paper Series 7661, The World Bank.

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