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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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    3. Jeffrey A. Frankel & David Romer, 1996. "Trade and Growth: An Empirical Investigation," NBER Working Papers 5476, National Bureau of Economic Research, Inc.
    4. Bertola, Giuseppe, 1992. "Models of Economic Integration and Localized Growth," CEPR Discussion Papers 651, C.E.P.R. Discussion Papers.
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    6. 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.
    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. María García-Vega & José A. Herce, "undated". "Interdependent Growth in the EU: The Role of Trade," Working Papers 2002-08, FEDEA.
    2. 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.
    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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