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Trade Integration between Eastern and Western Europe: Policies Follow the Market

Author

Listed:
  • Piazolo, Daniel

    (The Kiel Institute of World Economics)

Abstract

This paper examines to what extent Eastern Europe trade reorientation towards the West has been driven by market forces versus policies for regional integration. Hierarchical cluster analysis based on bilateral trade intensity reveals the convergence of regional trade structures to the pre- World- War II pattern. Estimates of the expected trade pattern of Eastern Europe with a grav - ity model predict continuing rising importance of the EU. Furthermore, the assessment of the welfare implications of preferential access to EU markets shows that beneficial effects of trade expansion are likely to outweigh possible distortions. Hence integration policies follow the facts created by the market.

Suggested Citation

  • Piazolo, Daniel, 1997. "Trade Integration between Eastern and Western Europe: Policies Follow the Market," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 12, pages 259-297.
    • Handle: RePEc:ris:integr:0050
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    Citations

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    Cited by:

    1. Pierluigi Montalbano & Silvia Nenci, 2011. "Are the Emerging Economies a Threat to the Italian Competitiveness?," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
    2. Hebatallah Ghoneim & Rana Abdulmonem & Noha Ghazy, 2021. "Egypt-Mercosur FTA: A Complementarity Analysis," Working Papers 54, The German University in Cairo, Faculty of Management Technology.
    3. Paul Brenton & Francesca Di Mauro & Matthias Lücke, 2014. "Economic Integration and FDI: An Empirical Analysis off Foreign Investment in the EU and in Central and Eastern Europe," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 7, pages 125-151, World Scientific Publishing Co. Pte. Ltd..
    4. Daniel Piazalo, 2000. "Poland's Membership in the European Union: An Analysis with a Dynamic Computable General Equilibrium (CGE) Model," LICOS Discussion Papers 8900, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    5. Dieter Schumacher, 2001. "Market Size and Factor Endowment: Explaining Comparative Advantage in Bilateral Trade by Differences in Income and Per Capita Income," Discussion Papers of DIW Berlin 259, DIW Berlin, German Institute for Economic Research.
    6. Piazolo, Daniel, 1998. "Investment behavior in dynamic computable general equilibrium models for transition economies," Kiel Working Papers 879, Kiel Institute for the World Economy (IfW Kiel).
    7. Dominick Salvatore, 2001. "The Problems of Transition, EU Enlargement, and Globalization," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(2), pages 137-157, June.
    8. Piazolo, Daniel, 1997. "Gaining credibility and enhancing economic growth through regional integration: The case for EU membership of Eastern Europe," Kiel Working Papers 837, Kiel Institute for the World Economy (IfW Kiel).
    9. Piazolo, Daniel, 2000. "Eastern Europe between Transition and Accession: An Analysis of Reform Requirements," Kiel Working Papers 991, Kiel Institute for the World Economy (IfW Kiel).
    10. Langhammer, Rolf J., 1998. "European integration deepening and widening: Implications for Asia," Kiel Working Papers 892, Kiel Institute for the World Economy (IfW Kiel).
    11. Andrzej Cieślik & Jan Hagemejer, 2011. "The Effectiveness of Preferential Trade Liberalization in Central and Eastern Europe," Working Papers 2011-21, Faculty of Economic Sciences, University of Warsaw.
    12. -, 1998. "Revista de la CEPAL no.64," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    13. Yener Kandogan, 1999. "Lingering effects of central planning on trade? Evidence from current CIS trade patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(3), pages 501-521, September.
    14. Mitze, Timo & Breidenbach, Philipp, 2018. "Economic integration and growth at the margin: A space-time incremental impact analysis," Ruhr Economic Papers 775, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    15. Nunnenkamp, Peter, 1997. "Mercosur und EU: institutionalisierte Kooperation als Stimulanz für Handel und Direktinvestitionen?," Open Access Publications from Kiel Institute for the World Economy 1737, Kiel Institute for the World Economy (IfW Kiel).
    16. Dieter Schumacher & Parvati Trübswetter, 2000. "Volume and Comparative Advantage in East-West Trade," Discussion Papers of DIW Berlin 223, DIW Berlin, German Institute for Economic Research.

    More about this item

    Keywords

    Trade; Integration;

    JEL classification:

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

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