Trade Effects of the Europe Agreements
Julia Spies and
No 274/2006, Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim from Department of Economics, University of Hohenheim, Germany
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)
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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