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Trade Structure during Accession to the EU

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  • Jarko Fidrmuc

Abstract

This article discusses the degree of trade restructuring between the EU and the new member states during the accession process. Intra-industry trade is selected as a composite indicator of trade structure. Factor endowments, market size and distance are the most important determinants of intra-industry trade. The estimations for the OECD countries are used to compute predictions for EU15 trade with the CEE countries. In general, this approach predicts well the EU15 trade structure with CEE, which proves significant restructuring in the new member states. High shares of intra-industry trade imply lower welfare losses and less resistance to further deepening of integration in the participating countries.

Suggested Citation

  • Jarko Fidrmuc, 2005. "Trade Structure during Accession to the EU," Post-Communist Economies, Taylor & Francis Journals, vol. 17(2), pages 225-234.
    • Handle: RePEc:taf:pocoec:v:17:y:2005:i:2:p:225-234
    DOI: 10.1080/14631370500104943
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    References listed on IDEAS

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    1. Simeon Djankov & Peter Murrell, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 739-792, September.
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    7. Fidrmuc, Jarko & Grozea-Helmenstein, Daniela & Wörgötter, Andreas, 1997. "Intra-Industry Trade Dynamics in the East-West Relations," East European Series 52, Institute for Advanced Studies.
    8. Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(1), pages 62-81, March.
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    10. repec:zbw:bofitp:2001_003 is not listed on IDEAS
    11. Ville Kaitila, 2002. "Accession Countries’ Comparative Advantage in the Internal," International Trade 0209001, University Library of Munich, Germany.
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    1. Ciaian, Pavel & Kancs, d'Artis & Pokrivcak, Jan, 2008. "Comparative Advantages, Transaction Costs and Factor Content in Agricultural Trade: Empirical Evidence from the CEE," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44135, European Association of Agricultural Economists.
    2. Michael J. Artis & Jarko Fidrmuc & Johann Scharler, 2008. "The transmission of business cycles Implications for EMU enlargement1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(3), pages 559-582, July.
    3. Valerija Botric, 2012. "Intra-industry Trade between the European Union and Western Balkans: A Close-up," Working Papers 1202, The Institute of Economics, Zagreb.
    4. Yu, Wusheng, 2009. "Schemes for aggregating preferential tariffs, trade volume effects and African LDCs," Conference papers 331918, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Imre Fertő & Karoly Attila Soos, 2009. "Duration of trade of former communist countries in the EU market," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 31-39.
    6. Jarko Fidrmuc & Sylvia Kaufmann & Andreas Resch, 2008. "Structural breaks in Austrian foreign trade with Eastern Europe during the early 1970s," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(5), pages 465-479, December.
    7. García, Pablo Marcelo, 2005. "Measuring Willingness-to-Pay in Discrete Chice Models with Semi-Parametric Techniques," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 5, pages 83-100, Octubre.
    8. George Magoulios & Stergios Athianos, 2013. "The Trade Balance of Greece in the Euro Era," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 11(2), pages 187-216.
    9. Ciaian, Pavel & Kancs, d'Artis & Pokrivcak, Jan, 2011. "Comparative Advantages, Transaction Costs and Factor Content in Agricultural Trade: Empirical Evidence from the CEE - Vantaggi comparati, costi di transazione e contenuto dei fattori nel commercio agr," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 64(1), pages 67-101.

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