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Trade Integration in the European Union: Relative Contributions of Openness and Interconnectedness

  • Pérez García Francisco

    ()

    (UNIVERSITY OF VALENCIA VALENCIAN ECONOMIC RESEARCH INSTITUTE (Ivie))

  • Arribas Fernández Iván

    ()

    (University of Valencia; Ivie)

  • Tortosa-Ausina Emili

    ()

    (INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie) UNIVERSITY JAUME I)

This working paper presents a set of indicators to measure regional trade integration, with a special focus on the case of the European Union. We propose measures of openness, connectedness and integration which are tuned to evaluate not only how these components contribute to the advance of international integration but also to control for the poten-tial threat that the proliferation of regional trade agreements may pose to trade globalization. Although this and related questions have been examined from several perspectives, the present article combines the virtues of using a network analysis approach and the possibility to explicitly quantify how regional trade agreements either intensify or thwart in­ternational trade integration. Results show that the process of international trade integration has intensified among EU members, whereas trade integration with non-members is advancing slowly. Our indicators provide a more complete view of the differing speeds of integration, which depends on the component of integration considered -either open­ness or connectedness.

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Paper provided by Fundacion BBVA / BBVA Foundation in its series Working Papers with number 2012112.

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Length: 42
Date of creation: Jun 2012
Date of revision:
Handle: RePEc:fbb:wpaper:2012112
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