Evolving Patterns in Manufactures Import Demand in the European Union: An Empirical Investigation of

Ray Barrell

No 145, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: European integration has changed patterns of trade and investment, and has had a significant effect on the growth process. This paper studies import demand in ten European countries over the period 1970‐1995, and the objective is to investigate whether the process of European integration has had direct and indirect effects on imports. Evidence is provided for parametric change in traditional import demand equations, suggesting that important variables or structural factors are missing from the long‐run equations. Equations are presented based on new trade theory, where technology and foreign direct investment variables are present and their effects are significant .

Date: 1999-02
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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:145

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