Border Effects and East-West Integration

Angela Cheptea

No 10-15, Working Papers SMART from INRAE UMR SMART

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 predicted by usual 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 F12 F14 F15 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2010
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Border Effects and European Integration (2013)
Working Paper: Border Effects and European Integration (2011)
Working Paper: Border Effects and East-West Integration (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:rae:wpaper:201015

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