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Integration, disintegration and trade in Europe: Evolution of trade relations during the 1990s

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  • Fidrmuc, Jarko
  • Fidrmuc, Jan

Abstract

The gravity model of trade is used to assess the economic consequences of new borders, which arose in the wake of break-ups of multinational federations in Eastern Europe. The intensity of trade relations among the constituent parts of Czechoslovakia, Soviet Union and the Baltics was very high around the time of disintegration, exceeding the normal level of trade approximately 40 times. Disintegration has been followed by a sharp fall in trade intensity. On the other hand, the trade liberalization between East and West has lead to gradual normalization of trade relations, and liberalization within CEFTA has reversed the fall in trade intensity among Central European countries.

Suggested Citation

  • Fidrmuc, Jarko & Fidrmuc, Jan, 2000. "Integration, disintegration and trade in Europe: Evolution of trade relations during the 1990s," ZEI Working Papers B 03-2000, University of Bonn, ZEI - Center for European Integration Studies.
    • Handle: RePEc:zbw:zeiwps:b032000
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    References listed on IDEAS

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    Cited by:

    1. Lúcio Vinhas de Souza, 2004. "A Wider Europe: Trade Relations Between an Enlarged EU and the Russian Federation," CASE Network Studies and Analyses 0279, CASE-Center for Social and Economic Research.
    2. Arjan M. Lejour & Ruud A. De Mooij & Richard Nahuis, 2001. "EU Enlargement: Economic Implications for Countries and Industries," CESifo Working Paper Series 585, CESifo.
    3. Chevassus-Lozza, Emmanuelle & Latouche, Karine & Majkovic, Darja & Unguru, Manuela, 2008. "The importance of EU-15 borders for CEECs agri-food exports: The role of tariffs and non-tariff measures in the pre-accession period," Food Policy, Elsevier, vol. 33(6), pages 595-606, December.
    4. Nahuis, Richard, 2004. "One size fits all?: Accession to the internal market; an industry-level assessment of EU enlargement," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 571-586, July.
    5. Brantley Liddle, 2006. "Sustainable Development and Globalization in a World with Unequal Starting Points," World Scientific Book Chapters, in: Masayuki Doi (ed.), Computable General Equilibrium Approaches In Urban And Regional Policy Studies, chapter 15, pages 323-355, World Scientific Publishing Co. Pte. Ltd..
    6. Chevassus-Lozza, Emmanuelle & Latouche, Karine & Majkovic, Darja, 2007. "How Much do Non-Tariff Measures Explain the Border Effect at Entry to the EU Market? The CEECs Agri-Food Exports to EU in the Pre-Accession Period," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9852, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Kurmanalieva, Elvira & Vinokurov, Evgeny, 2011. "Holding together or falling apart:Results of gravity equation of the CIS trade," MPRA Paper 32003, University Library of Munich, Germany.
    8. Kotios, Angelos & Saratsis, Yiannis & Kallioras, Dimitris & Metaxas, Theodore, 2005. "Balkans and Europe: identifying spatial development dimensions," MPRA Paper 42298, University Library of Munich, Germany.
    9. Maryanchyk Ivan, 2005. "Ukrainian international trade: How far from the potential?," EERC Working Paper Series 05-14e, EERC Research Network, Russia and CIS.
    10. Marina Bakanova & Lúcio Vinhas de Souza, 2002. "Trade and Growth under Limited Liberalization," Tinbergen Institute Discussion Papers 02-053/2, Tinbergen Institute.

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    More about this item

    Keywords

    Gravity Model; International Trade; European Integration; Disintegration;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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