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Integration and Growth in the EU. The Role of Trade

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  • Mª Luz García de la Vega
  • José A. Herce

Abstract

Using spatial econometrics techniques this paper investigates the relationship between trade and growth in the European Union (EU). We find that the EU integration process has promoted trade, especially between close neighbours, and that trade has been the channel of diffusion of interdependent growth, being this fact more important at the beginning of the integrating process than in the latter years. This result illustrates the idea that by enhancing trade, economic integration induces externalities between countries.

Suggested Citation

  • Mª Luz García de la Vega & José A. Herce, "undated". "Integration and Growth in the EU. The Role of Trade," Working Papers 2000-20, FEDEA.
    • Handle: RePEc:fda:fdaddt:2000-20
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    File URL: https://documentos.fedea.net/pubs/dt/2000/dt-2000-20.pdf
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    References listed on IDEAS

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    1. Jeffrey A. Frankel & David Romer, 1996. "Trade and Growth: An Empirical Investigation," NBER Working Papers 5476, National Bureau of Economic Research, Inc.
    2. Prewo, Wilfried E., 1974. "Integration effects in the EEC : An attempt at quantification in a general equilibrium framework," European Economic Review, Elsevier, vol. 5(4), pages 379-405, December.
    3. Bertola, Giuseppe, 1992. "Models of Economic Integration and Localized Growth," CEPR Discussion Papers 651, C.E.P.R. Discussion Papers.
    4. Marcus H. Miller & John E. Spencer, 1977. "The Static Economic Effects of the UK joining the EEC: A General Equilibrium Approach," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(1), pages 71-93.
    5. Lee Branstetter, 1996. "Are Knowledge Spillovers International or Intranational in Scope? Microeconometric Evidence from the Japan and the United States," NBER Working Papers 5800, National Bureau of Economic Research, Inc.
    6. Ana Goicolea & José A. Herce & Juan J. De Lucio, "undated". "Regional integration and growth: The Spanish case," Working Papers 98-14, FEDEA.
    7. Grinols, Earl L., 1984. "A thorn in the lion's paw: Has britain paid too much for Common Market membership?," Journal of International Economics, Elsevier, vol. 16(3-4), pages 271-293, May.
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    Cited by:

    1. Getachew, Asgedom Tessema & Tadele, Ferede & Arega, Hailu & Fantu, Guta, 2005. "The Impact of Regional Economic Cooperation on the Ethiopian Manufacturing Sector: the Case of Common Market for Southern and Eastern Free Trade Area (COMESA-FTA)," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 10(1), pages 1-98, May.
    2. María García-Vega & José A. Herce, "undated". "Interdependent Growth in the EU: The Role of Trade," Working Papers 2002-08, FEDEA.
    3. Girum Dagnachew Abate, 2016. "On the Link between Volatility and Growth: A Spatial Econometrics Approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(1), pages 27-45, March.

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