Verification of the New Trade Theory in EU's Trade with CEECs

Jarko Fidrmuc

No 72, Economics Series from Institute for Advanced Studies

Abstract: The new trade theory explains several features of the current development of EU's trade with CEECs better than the Heckscher-Ohlin model. In 1997, CEECs participated in the European economy with levels of intraindustry trade comparable to peripheral EU countries. However, this induced increased specialization in EU countries, which contrasts with the development in the previous decades. The development of intraindustry trade is positively related to the growth of wages and negatively to interest rates.

Keywords: New trade theory; Intraindustry trade; Kernel estimates of distribution; Fixed effects model (search for similar items in EconPapers)
JEL-codes: F12 F14 F15 (search for similar items in EconPapers)
Pages: 19 pages
Date: 1999-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://irihs.ihs.ac.at/id/eprint/1193 First version, 1999 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:ihs:ihsesp:72

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