The New Geography of Eastern European Trade
This paper is meant to answer the question whether the CMEA countries trade flows have been able to catch up with their trade potential. The gravity equations estimated over a panel of fourteen years show that there is a room for an increase in trade, which could compensate for the huge regional trade losses. How costly has the disintegration process been? The computation of gross trade destruction versus trade creation minus external trade diversion in the framework of the Viner model reflects the decreasing cost of the CMEA break-up: a dramatic trade reorientation has taken place and it is welfare improving. Copyright 1998 by WWZ and Helbing & Lichtenhahn Verlag AG
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|Date of creation:||1997|
|Date of revision:|
|Publication status:||Published in Kyklos, vol. 51-1998/1|
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