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Assessing the trade impact of the European Neighbourhood Policy on the EU-MED Free Trade Area

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  • P. Montalbano
  • S. Nenci

Abstract

The European Neighbourhood Policy (ENP) set an additional objective for the Southern Mediterranean Countries (SMCs): the prospect of 'a stake in the internal market'. The launch of this new policy has been the occasion for a revival of empirical studies aimed at assessing the impact of the EU-MED partnership on bilateral trade. The novelty of this work is twofold: (i) to present nonparametric matching estimators besides gravity estimates; (ii) to assume as a counterfactual of the treatment the ex-post long-run average treatment effects of the Europe Agreements. By controlling for likely selection bias and country and time heterogeneity, using both qualitative and quantitative measures of the policy variable, we assess ex-post the trade-enhancing impact of the EU preferential agreements towards SMCs and ex ante the actual efficacy of the ENP.

Suggested Citation

  • P. Montalbano & S. Nenci, 2014. "Assessing the trade impact of the European Neighbourhood Policy on the EU-MED Free Trade Area," Applied Economics, Taylor & Francis Journals, vol. 46(7), pages 730-740, March.
  • Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:730-740
    DOI: 10.1080/00036846.2013.851776
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    Cited by:

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    2. Augusto Cerqua & Pierluigi Montalbano & Zhansaya Temerbulatova, 2021. "A decade of Eurasian Integration: An ex-post non-parametric assessment of the Eurasian Economic Union," Working Papers 1/21, Sapienza University of Rome, DISS.
    3. Abdessalem Abassi & Lota Dabio Tamini, 2016. "Trade performance and potential of North African countries: An application of a stochastic frontier gravity model," Cahiers de recherche CREATE 2016-4, CREATE.
    4. M. D. Parra & I. Martínez-Zarzoso & C. Suárez-Burguet, 2013. "The impact of FTAs on MENA trade in industrial and agricultural products," Working Papers 13-05, Asociación Española de Economía y Finanzas Internacionales.
    5. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2013. "Are the EU trade preferences really effective? A Generalized Propensity Score evaluation of the Southern Mediterranean Countries' case in agriculture and fishery," Working Papers 2/13, Sapienza University of Rome, DISS.
    6. Mathias Juust & Priit Vahter & Urmas Varblane, 2017. "The Trade Effects Of The Eu-South Korea Free Trade Agreement In The Automotive Industry," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 105, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    7. M. D. Parra & I. Martinez-Zarzoso & C. Suárez-Burguet, 2016. "The impact of FTAs on MENA trade in agricultural and industrial products," Applied Economics, Taylor & Francis Journals, vol. 48(25), pages 2341-2353, May.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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