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Obchod s fiskálními statky v Evropské unii: Analýza za pomoci gravitačního modelu
[Trade with Final Goods in European Union: A Gravity Model Approach]

Author

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  • Richard Frensch
  • Jan Hanousek
  • Evžen Kočenda

Abstract

Based on the gravity model of the trade with imperfect specialization we suggest a testable econometric specification. The model considers bilateral gravity equation as a statistical relationship limited by the multilateral specialization patterns among countries. We test the model on disaggregated bilateral trade data of the European Union (EU) countries. Our results show that trade in final goods between East and West in Europe is driven by multilateral specialization incentives. The identified key drivers are supply side country differences in labour costs with respect to the rest of the world. This finding is compatible with the idea of incomplete specialization. We also show that trade between old and new EU members is realized more though increasing variety of products rather than by intensifying trade with established products.

Suggested Citation

  • Richard Frensch & Jan Hanousek & Evžen Kočenda, 2013. "Obchod s fiskálními statky v Evropské unii: Analýza za pomoci gravitačního modelu [Trade with Final Goods in European Union: A Gravity Model Approach]," Politická ekonomie, Prague University of Economics and Business, vol. 2013(6), pages 715-734.
    • Handle: RePEc:prg:jnlpol:v:2013:y:2013:i:6:id:927:p:715-734
    DOI: 10.18267/j.polek.927
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    More about this item

    Keywords

    European Union; international trade; panel data; gravity models;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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