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Variety Gains from Trade Integration in Europe

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  • d'Artis, Kancs
  • Persyn, Damiaan

Abstract

This is the first paper that investigates the welfare gains from trade integration in the CEE after the fall of the iron curtain, and the role of variety growth in determining the magnitude of those gains. We apply the methodology of Feenstra (1994), Broda and Weinstein (2006) and Soderbery (2013) to international trade data for Latvia for the period 1990-1994. The estimated variety gains are substantial, ranging from 0.874% to 2.890% of GDP per year.

Suggested Citation

  • d'Artis, Kancs & Persyn, Damiaan, 2010. "Variety Gains from Trade Integration in Europe," Conference papers 332032, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332032
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    File URL: https://ageconsearch.umn.edu/record/332032/files/5112.pdf
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    References listed on IDEAS

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    1. Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, vol. 85(4), pages 716-737, September.
    2. Shui, Bin & Harriss, Robert C., 2006. "The role of CO2 embodiment in US-China trade," Energy Policy, Elsevier, vol. 34(18), pages 4063-4068, December.
    3. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
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