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Economic integration in a multicone world?

  • Volpe Martincus, Christian
  • Pédussel Wu, Jennifer
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    This paper examines whether economic integration favors countries' convergence into a common cone of diversification. We analyze the manufacturing specialization patterns for a sample of 19 current and potential European Union countries over the period 1963-1998, and assess the impact of integration on their evolution. We perform year-by-year threshold estimations of Rybczynski relationships to identify the diversification cones and then estimate discrete choice models to investigate whether membership in the European Union is associated with a higher probability of being in a same cone. Economic integration in Europe is found to have promoted convergence from lower to higher diversification cones.

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    File URL: http://econstor.eu/bitstream/10419/39452/1/502457767.pdf
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    Paper provided by ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 07-2005.

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    Date of creation: 2005
    Date of revision:
    Handle: RePEc:zbw:zeiwps:b072005
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    Web page: http://www.zei.de/

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    1. Ben-David, D., 1995. "Trade and Convergence Among Countries," Papers 35-95, Tel Aviv.
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