Munich Personal RePEc Archive

Border Effects and European Integration

Cheptea, Angela (2011): Border Effects and European Integration. Published in:

[img]
Preview
PDF
mei11_Cheptea.pdf

Download (528kB) | Preview

Abstract

A new method for measuring trade potential from border effects is developed and applied to manufactured trade between the old fifteen European Union (EU) members and twelve Central and East European (CEE) economies. Border effects are estimated with three theoretically compatible trade specifications, and much larger trade potentials are obtained than usually predicted by standard trade potential models. Even after a decade of regional trade liberalization, the integration of CEE and EU economies is two to three times weaker than intra-EU integration, revealing a large potential for East-West European trade.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.