The Geography of Trade Among the European Union and the European Neighborhood Policy Countries

The paper analyzes empirically the geography of trade flows among the European Union countries and the European Neighborhood Policy countries. Focusing on the period 2000-2010 and utilizing trade data derived from COMTRADE Database, the paper draws conclusions with respect to the European Neighborhood Policy undertaking. The empirical analysis of the paper highlights that the European Neighborhood Policy countries are engaged in an asymmetric, inter-industry, type of trade activity with the European Union countries, facing serious difficulties in restructuring and diversifying their productive bases. Hence, the trade component of the European Neighborhood Policy does not provide a solid stimulus in the process of “neighbourhood Europeanization”. The findings of the paper provide valuable insight to both economic integration theory and policy-making, and, albeit specific to the European Neighborhood Policy countries, may be relevant also to other countries currently deepening their integration with the EU.