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Intra-European Trade of Manufacturing Goods: An extension of the Gravity Model

Marc Vancauteren and Daniel Weiserbs ()
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Marc Vancauteren: WHU-Koblenz

No 2005026, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: In this paper, we propose and test several extensions of the standard gravity model. This yields a specification that allows for (i) a more flexible income response; (ii) a competitiveness effect with a general and a specific component; and (iii) an alternative and consistent measure of remoteness. Those extensions were found to be significant factors to explain intra-EU trade. Next, we analyze the effect of EU harmonization of technical regulations on domestic and intra-EU trade. We find, at different levels of aggregation of the manufacturing sector, that harmonization of regulations has contributed to more intra-EU trade but, apparently, did not affect the so called border effect.

Pages: 36
Date: 2005-05-01
New Economics Papers: this item is included in nep-eec and nep-int
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Journal Article: Intra-European Trade of Manufacturing Goods: An Extension of the Gravity Model (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvec:2005026

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