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East-West Trade Before the EU-expansion - A Gravity Model Analysis

Snellman, Victor (2005)
Department of Economics
Abstract
When the EU expanded to include ten new countries, the popular opinion was that this would inevitably lead to large increases in trade flows between eastern and western Europe. However, economists have studied the potential for increased trade between the two regions since the fall of the Berlin wall, and much of the evidence indicates that the EU already had a very good bilateral trade relationship with all of the new EU- members as early as the mid-nineties. This, coupled with the fact that the EU already is such an open market, and that the accession agreements had granted the future members even better access, indicates that the popular opinions might be incorrect. This paper investigates the question by using the gravity model of... (More)
When the EU expanded to include ten new countries, the popular opinion was that this would inevitably lead to large increases in trade flows between eastern and western Europe. However, economists have studied the potential for increased trade between the two regions since the fall of the Berlin wall, and much of the evidence indicates that the EU already had a very good bilateral trade relationship with all of the new EU- members as early as the mid-nineties. This, coupled with the fact that the EU already is such an open market, and that the accession agreements had granted the future members even better access, indicates that the popular opinions might be incorrect. This paper investigates the question by using the gravity model of trade, and concludes that the evidence is somewhat unclear, which in itself attests to the success of pre-accession trade
integration efforts. (Less)
Please use this url to cite or link to this publication:
author
Snellman, Victor
supervisor
organization
year
type
M2 - Bachelor Degree
subject
keywords
European Union, East-West Trade, Gravity Model, Regional Integration, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1336017
date added to LUP
2005-08-09 00:00:00
date last changed
2010-08-03 10:53:10
@misc{1336017,
  abstract     = {{When the EU expanded to include ten new countries, the popular opinion was that this would inevitably lead to large increases in trade flows between eastern and western Europe. However, economists have studied the potential for increased trade between the two regions since the fall of the Berlin wall, and much of the evidence indicates that the EU already had a very good bilateral trade relationship with all of the new EU- members as early as the mid-nineties. This, coupled with the fact that the EU already is such an open market, and that the accession agreements had granted the future members even better access, indicates that the popular opinions might be incorrect. This paper investigates the question by using the gravity model of trade, and concludes that the evidence is somewhat unclear, which in itself attests to the success of pre-accession trade
integration efforts.}},
  author       = {{Snellman, Victor}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{East-West Trade Before the EU-expansion - A Gravity Model Analysis}},
  year         = {{2005}},
}