Border Effects and European Integration

Angela Cheptea

CESifo Economic Studies, 2013, vol. 59, issue 2, 277-305

Abstract: A new method for measuring trade potential from border effects is developed and applied to manufactured trade between the old 15 European Union (EU) members and 12 Central and East European (CEE) economies. Border effects are estimated with a theoretically compatible trade specification 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. Adjusting for the impact of borders on multilateral resistance, yields lower trade potentials, but considerably larger than the magnitudes obtained with traditional approaches. (JEL codes: F10; F12; F14; F15) Copyright The Author 2012. Published by Oxford University Press on behalf of Ifo Institute for Economic Research, Munich. All rights reserved. For permissions, please email: journals.permissions@oup.com, Oxford University Press.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1093/cesifo/ifs035 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Border Effects and European Integration (2011)
Working Paper: Border Effects and East-West Integration (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:cesifo:v:59:y:2013:i:2:p:277-305

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

CESifo Economic Studies is currently edited by Panu Poutvaara

More articles in CESifo Economic Studies from CESifo Group Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().