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The Impact of Regionalism on Trade in Europe

Author

Listed:
  • Alho, Kari E O

    (ETLA Finland)

Abstract

Using the classical gravity model we try to reach a more systematic view than previously in the literature of the impact of regionalism on the intensity of mutual integration through trade in Europe. We find that European trade is significantly influenced by various regional agreements and intensities of trade are strongly asymmetric between the regions. EMU has a positive impact on bilateral trade intensity, and its effect on total European trade of its member countries is also significantly positive. Both between the EU and CEE countries there are, respectively, significant differences with respect to the intensity in this trade.

Suggested Citation

  • Alho, Kari E O, 2003. "The Impact of Regionalism on Trade in Europe," Royal Economic Society Annual Conference 2003 3, Royal Economic Society.
    • Handle: RePEc:ecj:ac2003:3
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    Cited by:

    1. Alho, Kari E.O., 2004. "A Gravity Model under Monopolistic Competition," Discussion Papers 962, The Research Institute of the Finnish Economy.
    2. Wirgrén, Mika, 2006. "Trade Potential, Intra-industry Trade and Factor Content Revealed Comperative Advantage in the Baltic Sea Region," Discussion Papers 1034, The Research Institute of the Finnish Economy.

    More about this item

    Keywords

    trade; EU; EMU; CEE; gravity model;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

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