Quantifying Economic Integration of the European Union and the Eurasian Economic Union: Methodological Approaches

Pelipas, Igor and Tochitskaya, Irina and Vinokurov, Evgeny (2014): Quantifying Economic Integration of the European Union and the Eurasian Economic Union: Methodological Approaches. Published in: (2014)

Abstract

Despite current political headwinds, there is need for a timely expert assessment of the comprehensive economic integration between the European Union (EU) and the emerging Eurasian Economic Union (EEU). This report constitutes a preliminary methodological study. It starts off by offering a general understanding of the possible scope and limits of EU-EEU economic integration. It surveys the available literature on the various impacts that may arise if regional trade and investment agreements come into force. The report examines the use of computable general equilibrium models for assessment of the economic impact of integration agreements. It also analyses econometric methods used to study regional integration; and it discusses the applicability and constraints of other methods used to evaluate the effects of regional commercial agreements. The report presents a brief analysis of the methodology of assessing the impact of lifting non-tariff barriers.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic integration, regional integration, European Union, Eurasian Economic Union, non-tariff barriers, Europe, Eurasia, Russia
• Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F5 - International Relations, National Security, and International Political Economy

References

Anderson, J. E. (1979) A theoretical foundation of the gravity equation, American Economic Review, 69, 106–16

Astrov, V., Havlik, P., Pindyuk, O. (2012) Trade Integration in the CIS: Alternate Options, Economic Effects and Policy Implications for Belarus, Kazakhstan, Russia and Ukraine, wiiw Research Report No. 381, Vienna: Vienna Institute for International Economic Studies, wiiw.

Bacchetta, M. et.al. (2012) A practical guide to trade policy analysis,UN and WTO.

Baier, S., Bergstrand J. (2004) Economic determinants of free trade agreements, Journal of International Economics,64, 29–63.

Brada, J.C., Mendez, J.A. (1988) An estimate of the dynamic effects of economic integration,Review of Economics and Statistics, 70, 1, 163–168.

Cadot, O., Malouche, M., and Saez, S. (2013) Streamlining Non-Tariff Measures. A Toolkit for Policy Makers. World Bank: Washington, D.C.

CASE (2007) Global Analysis Report for the EU-Ukraine TSIA. Ref: TRADE06/D01. Concept Global Analysis Report prepared by ECORYS and CASE.

Centre for Integration Studies (2012) Comprehensive assessment of the macroeconomic effects of various forms of deep economic integration of Ukraine and the member states of the Customs Union and the Common Economic Space. Report no.1. Eurasian Development Bank: St. Petersburg.

CEPS (2006) The Prospect of Deep Free Trade Between the European Union and Ukraine. Report prepared by the Centre for European Policy Studies (CEPS), Brussels, Institut fur Weltwirtschaft (IFW), Kiel; International Centre for Policy Studies (ICPS), Kyiv. CEPS: Brussels.

Deardorff, A. V. (1998) Determinants of bilateral trade: Does gravity work in a neoclassical world? In Frankel, J. (ed.), The regionalization of the world economy, Chicago University Press, Chicago.

Ecorys (2009) Non-Tariff Measures in EU-US Trade and Investment – An Economic Analysis. Report prepared by Berden, K., Francois,J.F.,Tamminen, S.,Thelle,M. and Wymenga,P.for the European Commission, Reference OJ 2007/S180-219493.

Ferrantino, M. (2006) Quantifying the Trade and Economic Effects of Non-Tariff Measures, OECD Trade Policy Working Paper No. 28, TD/TC/WP(2005)26/FINAL, OECD, Paris.

Grossman, G., Helpman E. (1995) The policy of free-trade agreements, American Economic Review, 85,680 – 690. Hummels,D. (2001) Time as a Trade Barrier, Working paper, Purdue University.

Kaitila, V. (2007) Free trade between the EUand Russia: Sectoral effects and impact on Northwest Russia, ETLA Discussion Paper, 1087.

Laird, S., Yeats, A. (1990) Quantitative Methods for Trade Barrier Analysis, Macmillan, London, and NUUP, New York.

Libman, A., Vinokurov, E. (2011) Is it really different? Patterns of regionalisation in post-Soviet Central Asia, Post-Communist Economies, 23, 469–492.

Manchin, M. (2004)The economic effects of a Russia-EU FTA, Tinbergen Institute Discussion Paper, TI 2004-131/2. Meade, J. (1955) The Theory of Customs Unions, Amsterdam: North-Holland.

Plummer, M., Cheong, D., Hamanaka, S. (2010) Methodology for impact assessment of free trade agreements, Asian Development Bank.

Plummer, M.G., Cheong, D., Hamanaka, S. (2010) Methodology for impact assessment of free trade agreements, Asian Development Bank.

Pyatt, G., and Round, J.I.,eds. (1985) Social Accounting Matrices: A Basis for Planning, Washington, World Bank.

Shepherd, B. (2013) The gravity model of international trade: A user guide,ARTNeT Gravity Modeling Initiative, UN.

Shoven, J. and Whalley, J.(1992) Applying general equilibrium, New York: Cambridge University Press.

Sulamaa, P. and WidgrénM. (2005) Economic effects of free trade between the EU and Russia, ENEPRI Working Paper No. 36/May 2005.

Tochitskaya, I., de Souza L.V. (2008) Trade Relations between an Enlarged EU and the Russian Federation, and its Effects in Belarus, Economic Changes and Restructuring, Vol. 42, No. 1-2, pp. 1-24.

UNCTAD (2010)Non-tariff Measures: Evidence from Selected Developing Countries and Future Research Agenda, Developing Countries in International Trade Studies.

Velde, D. W., Bezemer, D. (2006) Regional integration and foreign direct investment in developing countries, Transnational Corporations, 15,42–69.

Venables, A. (2003) Winners and losers from regional integration agreements, Economic Journal,113,747–761

Vinokurov E. et al. (2010) EDB System of Indicators of Eurasian Integration. Eurasian Development Bank: Almaty.

Walmsley T., Winters A. (2005) Relaxing the restrictions on the temporary movement of natural persons: A simulation analysis, Journal of Economic Integration,20, 688–726.

Wonnacott P., Lutz M. (1989)Is there a case for free trade areas? In Schott, J. (ed.) Free trade areas and U.S. trade policy, Washington, D.C.: Institute for International Economics.

World Bank (2005) From Disintegration to Reintegration: Eastern Europe and the Former Soviet Union in International Trade, Washington, DC: World Bank Publications.