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Disappearing Borders in the Visegrad Countries

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  • Ádám Márkus

Abstract

The aim of this paper is to evaluate the trade integration process of the Visegrad countries from a special point of view, namely by estimating border effects in the countries. The regressional analysis run with two different estimators (OLS vs. PPML) on two different model specifications suggests that between 1995 and 2011 the V4 countries were integrating continuously into the Single Market of the European Union. The results also show that the size of border effect is fairly sensitive to the estimator and particularly to the specification chosen by the researcher. According to the country-level estimation, Hungary seems to be the most integrated country getting the lowest home bias parameters followed by the Czech Republic, Slovakia and Poland, respectively.

Suggested Citation

  • Ádám Márkus, 2018. "Disappearing Borders in the Visegrad Countries," Prague Economic Papers, Prague University of Economics and Business, vol. 2018(2), pages 149-168.
    • Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:2:id:635:p:149-168
    DOI: 10.18267/j.pep.635
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    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
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    4. Russell Hillberry & David Hummels, 2003. "Intranational Home Bias: Some Explanations," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1089-1092, November.
    5. Chen, Natalie, 2006. "Erratum to "Intra-national versus international trade in the European Union: Why do national borders matter?" [J. Int. Econ. 63 (2004) 93-118]," Journal of International Economics, Elsevier, vol. 70(1), pages 334-335, September.
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    JEL classification:

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

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