The Role of the New Goods Margin for New EU Countries Trade

Ignacio Del Rosal

Journal of Common Market Studies, 2019, vol. 57, issue 6, 1333-1348

Abstract: Recent literature on international trade has devoted increased attention to the role played by the extensive margin of trade for economies engaged in liberalization and structural transformation processes, such as the new EU countries. This article documents the leading role of the new goods margin in trade growth for the new member states that have acceded the EU in 2004 and 2007. Product trade data is used to analyse the trade share of the new goods over the sample period 1999–2014. The results show that the extensive margin of trade grew from 10 to around 50 per cent for most bilateral trade flows of the new EU member states. Further decomposition of the new goods margin shows that the goods already traded though in small volumes at the beginning of the period play a leading role.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jcmkts:v:57:y:2019:i:6:p:1333-1348

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