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The Contribution of Intra-Regional and Extra-Regional Trade to Growth: Evidence from the European Union

Author

Listed:
  • B. Wooster, Rossitza

    () (Portland State University)

  • Dube, Smile

    () (California State University, Sacramento)

Abstract

In this paper, we assess whether trade among member countries of a regional trade agreement (intra-regional trade) contributes more to output growth than trade with nonmember countries (extra-regional trade). We use Granger causality tests to evaluate the trade-growth relationship in 13 countries from the European Union and separately estimate the differential impact of the two kinds of trade on economic growth over the period 1980-2003. In addition to the basic influences of investment and population growth, we find that intra-regional trade has had a lesser impact on growth in output per capita than extra-regional trade by almost 30%.

Suggested Citation

  • B. Wooster, Rossitza & Dube, Smile, 2008. "The Contribution of Intra-Regional and Extra-Regional Trade to Growth: Evidence from the European Union," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 161-182.
  • Handle: RePEc:ris:integr:0430
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    Citations

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    Cited by:

    1. Dumitru Miron & Alina Mihaela Dima & Simona Vasilache, 2010. "Models Of The Intra-Regional Trade Influence On Economic Sustainable Development In Romania," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 12(27), pages 27-35, February.

    More about this item

    Keywords

    Regional Integration; Trade Patterns; Economic Growth of Open Economies;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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