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Asymmetric Impacts of Economic Integration: The Case of the Single European Market

Author

Listed:
  • Lionel Fontagne

    (Paris School of Economics)

  • Krasimir Shishmanov

    (Tsenov Academy of Economics)

  • Penka Shishmanova

    (Tsenov Academy of Economics)

  • Yoto Yotov

    (School of Economics, Drexel University)

Abstract

Economic gains from trade integration channel through inward or outward multilateral resistance terms, hence through consumption or production effects. But these impacts differ in their relative intensity among members of the integrated region, which leads to asymmetric outcomes. We study these asymmetric effects of European integration on the exports vs. imports of the members of the Single Market and obtain disaggregated asymmetric EU estimates for 170 industries. The econometric analysis delivers a rich database of more than 9,300 estimates of the EU effects on trade among its members. Three main findings emerge from our analysis. First, previous estimates where asymmetries were silenced underestimated the gains from EU integration. Second, these asymmetries in the effects of the Single Market on the members’ trade are very large. Third, the EU has benefited disproportionately the consumers in older/richer members and the producers in the new/poorer joiners.

Suggested Citation

  • Lionel Fontagne & Krasimir Shishmanov & Penka Shishmanova & Yoto Yotov, 2025. "Asymmetric Impacts of Economic Integration: The Case of the Single European Market," Working Papers 202533, Center for Global Policy Analysis, LeBow College of Business, Drexel University.
    • Handle: RePEc:drx:wpaper:202533
    as

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    File URL: https://www.lebow.drexel.edu/sites/default/files/2025-08/cgpa_paper_2025_33.pdf
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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