Border Effects and European Integration

Angela Cheptea

MPRA Paper from University Library of Munich, Germany

Abstract: A new method for measuring trade potential from border effects is developed and applied to manufactured trade between the old fifteen European Union (EU) members and twelve Central and East European (CEE) economies. Border effects are estimated with three theoretically compatible trade specifications, and much larger trade potentials are obtained than usually predicted by standard trade potential models. Even after a decade of regional trade liberalization, the integration of CEE and EU economies is two to three times weaker than intra-EU integration, revealing a large potential for East-West European trade.

Keywords: Trade potential; regional integration; border effects. (search for similar items in EconPapers)
JEL-codes: F10 F14 F15 (search for similar items in EconPapers)
Date: 2011-02
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https://mpra.ub.uni-muenchen.de/47009/1/mei11_Cheptea.pdf original version (application/pdf)

Related works:
Journal Article: Border Effects and European Integration (2013)
Working Paper: Border Effects and East-West Integration (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:47009

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