New Member States' Trading Potential Following EMU Accession: A Gravity Approach

Maryla Maliszewska

No 286, CASE Network Studies and Analyses from CASE-Center for Social and Economic Research

Abstract: The purpose of this paper is to look at implications of the EMU accession on international trade flows of the new member states with members of the enlarged EU. I begin with the evaluation of an early impact of the EMU on trade based on a gravity model. The results are then employed in the calculation of potential levels of trade of the Central and East European countries. The results show a high degree of trade integration between most of the new member states and the EU except for Latvia, Lithuania and Poland. In trade among the new member states, potential trade flows by far exceed actual levels for all countries except the Czech Republic and Slovakia.

Keywords: international trade; gravity model; currency union; Eastern Europe (search for similar items in EconPapers)
Pages: 19 Pages
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:sec:cnstan:0286

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