The Effectiveness of Preferential Trade Liberalization in Central and Eastern Europe

Andrzej Cieślik and Jan Hagemejer

No 2011-21, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: After the collapse of communism in Central and Eastern Europe (CEE) many countries in the region radically liberalized their foreign trade regimes in the 1990s. In particular preferential trade liberalization in the CEE countries has been promoted by the European Union in the form of the association agreements that involved “vertical” trade liberalization between the EU and countries in Central and Eastern Europe. In addition to this the CEE countries liberalized trade “horizontally” among themselves in the form of sub-regional and bilateral free trade agreements. In this paper, we use the generalized gravity equation estimated on bilateral trade data for ten CEE countries during the period of 1993-2004 to evaluate the effectiveness of preferential trade liberalization in Central and Eastern Europe. We find that all forms of preferential trade liberalization positively contributed to the expansion of trade of the CEE countries but their impact was country specific.

Keywords: bilateral trade; gravity equation; preferential trade liberalization (search for similar items in EconPapers)
JEL-codes: F13 F15 P33 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2011
New Economics Papers: this item is included in nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP61.pdf First version, 2011 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2011-21

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