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Trade Effects of the Europe Agreements

Julia Spies and Helena Marques

No 274/2006, Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim from Department of Economics, University of Hohenheim, Germany

Abstract: The eastern enlargement of the European Union (EU) brought and will bring full membership to countries whose trade barriers with the EU had to a large extent already been removed under Free Trade Agreements (FTAs) during the 1990s. We employ a theory-based new version of a gravity equation, whose specification allows for an assessment of the impact of the arrangements on extra- and intra-group imports. We find robust evidence that the agreements have substantially increased intra-group trade, in the case of the Czech and Slovak Republic at the expense of the Rest of the World (ROW).

Keywords: Free Trade Agreements; Gravity equation; Central and Eastern Europe; Panel data (search for similar items in EconPapers)
JEL-codes: F15 C23 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-eec, nep-int and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:hoh:hohdip:274

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