Economic Integration and Similarity in Trade Structures
In this paper we look at the similarity of trade structures in an integrating area. In particular, we analyse the export flows toward the EU market of four of the so-called “accession countries" of Central and Eastern Europe by comparing them to those of the pre-2004 members of the European Union (EU15). From a methodological point of view, we evaluate the appropriateness of different classes of similarity indices - correlation indices and distance metrics - opting for the use of the Bray-Curtis semi-metric to assess changes in the trade similarity. We examine its evolution over time - from 1989 to 2001 - considering both self-similarity (how the export composition of a CEEC has changed with respect to the beginning of the transition process) and EU-similarity (if and how the export composition of a CEEC has changed with respect to the EU15 export composition). Finally, we use EU-similarity matrices to test if the dynamics of sectoral distribution of total exports of Poland, Hungary, Romania, and Bulgaria to the EU is related to the role acquired by processed trade in the 1990s. Using a nonparametric Mantel test we give evidence that: (1) processed trade is crucial in explaining changes in the overall structure of exports of transition countries, and (2) that greater economic integration in terms of trade flows and processing trade does not always lead to greater export similarity between the CEECs and the EU15 member States.
|Date of creation:||Apr 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Corso Magenta, 63 - 20123 Milan|
Web page: http://www.feem.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Brenton & Miriam Manchin, 2002.
"Making EU Trade Agreements Work: The Role of Rules of Origin,"
wiiw Balkan Observatory Working Papers
27, The Vienna Institute for International Economic Studies, wiiw.
- Paul Brenton & Miriam Manchin, 2003. "Making EU Trade Agreements Work: The Role of Rules of Origin," The World Economy, Wiley Blackwell, vol. 26(5), pages 755-769, 05.
- Paul Brenton & Miriam Manchin, 2002. "Making EU Trade Agreements Work: The Role of Rules of Origin," International Trade 0203003, EconWPA.
- Jan Svejnar, 2001.
"Transition Economies: Performances and Challenges,"
William Davidson Institute Working Papers Series
415, William Davidson Institute at the University of Michigan.
- Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October.
- Jean IMBS, 1998.
Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP)
9819, Université de Lausanne, Faculté des HEC, DEEP.
- Michael A. Landesmann & Robert Stehrer, 2002. "Evolving Competitiveness of CEEC’s in an Enlarged Europe," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 23-88, January-F.
- Forslid, Rikard & Haaland, Jan I. & Midelfart Knarvik, Karen Helene, 2002.
"A U-shaped Europe?: A simulation study of industrial location,"
Journal of International Economics,
Elsevier, vol. 57(2), pages 273-297, August.
- Forslid, Rikard & Haaland, Jan I. & Ulltveit-Moe, Karen-Helene, 1999. "A U-Shaped Europe? A Simulation Study of Industrial Location," CEPR Discussion Papers 2247, C.E.P.R. Discussion Papers.
- Forslid, R. & Haaland, J.I. & Knarvik, K.H.M., 1999. "A U-Shaped Europe? A Simulation Study of Industrial Location," Papers 19/99, Norwegian School of Economics and Business Administration-.
- Hoekman, Bernard & Djankov, Simeon, 1997. "Determinants of the Export Structure of Countries in Central and Eastern Europe," World Bank Economic Review, World Bank Group, vol. 11(3), pages 471-87, September.
- Stephen Redding, 2002.
LSE Research Online Documents on Economics
210, London School of Economics and Political Science, LSE Library.
- Yew-Kwang Ng & Guang-Zhen Sun, 2000. "The measurement of structural differences between economies: An axiomatic characterization," Economic Theory, Society for the Advancement of Economic Theory (SAET), vol. 16(2), pages 313-321.
- Clark, Todd E. & van Wincoop, Eric, 2001.
"Borders and business cycles,"
Journal of International Economics,
Elsevier, vol. 55(1), pages 59-85, October.
- Jayant Menon & Peter Dixon, 1997. "Intra-industry versus inter-industry trade: Relevance for adjustment costs," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(1), pages 164-169, March.
- Facchini, Giovanni & Segnana, Maria Luigia, 2003. "Growth at the EU periphery: the next enlargement," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(5), pages 827-862.
- Halpern, László, 1994. "Comparative Advantage and Likely Trade Pattern of the CEECs," CEPR Discussion Papers 1003, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:fem:femwpa:2006.54. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah)
If references are entirely missing, you can add them using this form.