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Trade performances and technology in the enlarged European Union

Author

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  • Alessandro Antimiani
  • Valeria Costantini

Abstract

We analyse the role of the enlargement process of the European Union as a factor fostering international competitiveness of EU Member States. We argue that the economic integration process has partially reduced the technological gap between old and new EU Member States, and this pattern of technological innovation can partially explain the strong impulse on the export dynamics of European countries. We have built an augmented gravity model by including the role of technological innovation, proxied by the stock of knowledge at the sector level. By using a dynamic panel data estimator we find three main empirical evidences. First, the enlargement process has produced an overall larger positive impact on export flows for new members than for old ones, and more importantly that sectors with the higher technological content have received the strongest impulse. Second, the augmented gravity model allows shaping the crucial role of technological innovation in fostering export competitiveness. Third, this impact seems to be stronger for old EU member states than for new ones. The policy implication we derive is that the more the new EU members catch up technologically as a result of the integration process, the more they will benefit in terms of economic development.

Suggested Citation

  • Alessandro Antimiani & Valeria Costantini, 2010. "Trade performances and technology in the enlarged European Union," Departmental Working Papers of Economics - University 'Roma Tre' 0111, Department of Economics - University Roma Tre.
  • Handle: RePEc:rtr:wpaper:0111
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    File URL: http://host.uniroma3.it/dipartimenti/economia/pdf/WP111.pdf
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    Cited by:

    1. Inmaculada Martínez-Zarzoso & Martina Vidovic & Anca M. Voicu, 2014. "EU-Accession Effects on Sectoral Trade: A Helpman-Melitz-Rubinstein Approach with Panel Data," CESifo Working Paper Series 4903, CESifo Group Munich.
    2. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2011. "CEECs Integration into Regional Production Networks. Trade Effects of EU-Accession," Proceedings of the German Development Economics Conference, Berlin 2011 55, Verein für Socialpolitik, Research Committee Development Economics.
    3. Antimiani, Alessandro & Cernat, Lucian, 2017. "Liberalizing global trade in Mode 5 services: How much is it worth?," DG TRADE Chief Economist Notes 2017-4, Directorate General for Trade, European Commission.
    4. Inmaculada Martinez-Zarzoso & Anca Voicu & Martina Vidovic, 2015. "Central East European Countries’ accession into the European Union: role of extensive margin for trade in intermediate and final goods," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(4), pages 825-844, November.
    5. Valeria Costantini & Francesco Crespi, 2015. "European enlargement policy, technological capabilities and sectoral export dynamics," The Journal of Technology Transfer, Springer, vol. 40(1), pages 25-69, February.
    6. repec:ces:ifodic:v:9:y:2011:i:2:p:16134093 is not listed on IDEAS
    7. Timo Baas & Herbert Brücker, 2011. "EU Eastern Enlargement: The Benefits from Integration and Free Labour Movement," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(2), pages 44-51, 07.
    8. Nina Bockova, 2015. "Research, Development And Innovations In Czech Manufacture Of Electronic Products," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 10(4), pages 163-180, December.

    More about this item

    Keywords

    EU enlargement; gravity model; international trade; economic integration; technological innovation;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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