Disintegration and Trade

Jan Fidrmuc and Jarko Fidrmuc

No 2641, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The gravity model of trade is utilized to assess the impact of disintegration on trade. The analysis is based on three recent disintegration episodes involving the former Soviet Union, Yugoslavia and Czechoslovakia. The results point to a very strong home bias around the time of disintegration, with intra-union trade exceeding normal trade approximately 43 times in the former Soviet Union and Czechoslovakia, and 24 times in the former Yugoslavia. Disintegration was followed by a sharp fall in trade intensity. Nevertheless, there is a considerable hysteresis in economic relations, with trade flows among the former constituent Republics still between two and 30 times greater than normal trade in 1998.

Keywords: International trade; Gravity model; Disintegration (search for similar items in EconPapers)
JEL-codes: F13 F15 F41 (search for similar items in EconPapers)
Date: 2000-12
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Citations: View citations in EconPapers (33)

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Related works:
Journal Article: Disintegration and Trade (2003)
Working Paper: Disintegration and Trade (2001)
Working Paper: Disintegration and trade (2001)
Working Paper: Disintegration and Trade (2000)
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