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European Integration, Intra-industry Trade in Vertically Differentiated Products and the Balkan Countries

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  • Dimitri Mardas
  • Chistos Nikas

Abstract

The aim of this paper is to examine the relation between the integration process and the intensity of intra-industry trade between two countries of different levels of development. Our theoretical model and results indicate that trade liberalization and the establishment of the Free Trade Areas between the Balkan countries and the EC have led to the growth of the intra-industry trade between Greece—EC member state—and those countries. The main instruments of this process have been the Europe Agreements and the Stabilization and Association Agreements between the Balkan countries and the EC. The paper presents a model in vertically differentiated products in a Free Trade Area context and proceeds to depict the intensity of intra-industry trade between Greece and the Balkan countries. Copyright International Atlantic Economic Society 2008

Suggested Citation

  • Dimitri Mardas & Chistos Nikas, 2008. "European Integration, Intra-industry Trade in Vertically Differentiated Products and the Balkan Countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(4), pages 355-368, November.
    • Handle: RePEc:kap:iaecre:v:14:y:2008:i:4:p:355-368:10.1007/s11294-008-9164-9
    DOI: 10.1007/s11294-008-9164-9
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    More about this item

    Keywords

    Intra-industry trade; Customs Union; Transition economies; Balkan countries; F14; F15;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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