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Verification of the New Trade Theory in EU's Trade with CEECs

Author

Listed:
  • Fidrmuc, Jarko

    (Institute for Advanced Studies, Vienna)

Abstract

The new trade theory explains several features of the current development of EU's trade with CEECs better than the Heckscher-Ohlin model. In 1997, CEECs participated in the European economy with levels of intraindustry trade comparable to peripheral EU countries. However, this induced increased specialization in EU countries, which contrasts with the development in the previous decades. The development of intraindustry trade is positively related to the growth of wages and negatively to interest rates.

Suggested Citation

  • Fidrmuc, Jarko, 1999. "Verification of the New Trade Theory in EU's Trade with CEECs," Economics Series 72, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihsesp:72
    as

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    File URL: https://irihs.ihs.ac.at/id/eprint/1193
    File Function: First version, 1999
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    References listed on IDEAS

    as
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    5. Jarko Fidrmuc & Daniela Grozea-Helmenstein & Andreas Wörgötter, 1999. "East-west intra-industry trade dynamics," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(2), pages 332-346, June.
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    Citations

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    Cited by:

    1. Dražen Derado, 2008. "Effects of Trade Liberalization in Croatia: An Approximation of the Integration Effects with the EU," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 11(1), pages 81-96, May.
    2. Jarko Fidrmuc, 2004. "The Endogeneity of the Optimum Currency Area Criteria, Intra‐industry Trade, and EMU Enlargement," Contemporary Economic Policy, Western Economic Association International, vol. 22(1), pages 1-12, January.
    3. repec:zbw:bofitp:2001_008 is not listed on IDEAS
    4. Jarko Fidrmuc, 2004. "The Endogeneity of the Optimum Currency Area Criteria, Intra‐industry Trade, and EMU Enlargement," Contemporary Economic Policy, Western Economic Association International, vol. 22(1), pages 1-12, January.
    5. Jarko Fidrmuc & Peter Huber & Jan Jakub Michalek, 1999. "Poland's Accession to the European Union: Demand for Protection of Selected Sensitive Products," WIFO Working Papers 117, WIFO.
    6. Dumitru, Ionut, 2009. "Adoptarea euro in Romania [Euro adoption in Romania]," MPRA Paper 18612, University Library of Munich, Germany.

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    More about this item

    Keywords

    New trade theory; Intraindustry trade; Kernel estimates of distribution; Fixed effects model;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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