Pattern of trade and European economic integration

Fabien Rondeau

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Abstract: In this article, the degree of integration between European countries is linked to the evolution of the pattern of trade. Evolution of the long-run sensitivity between European outputs is estimated by recursive Fully-Modified Ordinary Least Squares (FM-OLS) and compared to a recursive index of intra-industry trade. Significant correlations are found between integration and intra-industry trade share: positive for most countries but negative for others. The explanatory variable seems to be the initial intra-industry trade share.

Keywords: Trade; economic integration; cointegration; growth; intra-industry trade (search for similar items in EconPapers)
Date: 2007
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Published in Applied Economics Letters, 2007, 14 (14), pp.1013 - 1018

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Journal Article: Pattern of trade and European economic integration (2007)
Working Paper: Pattern of Trade and European Economic Integration (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00444882

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