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CEECS integration into regional production networks. Trade effects of EU-accesion

Author

Listed:
  • Inmaculada Martínez-Zarzoso

    (Economics Department, Universitat Jaume I, Castellón, Spain)

  • Anca M. Voicu

    (Department of Economics Rollins College)

  • Martina Vidovic

    (Department of Economics Rollins College)

Abstract

We estimate a gravity model that incorporates the extensive margin of trade and accounts for firm heterogeneity to evaluate the effect of the EU-accession on CEECs trade in intermediates and final goods for the period 1999-2009. The importance of production networks is captured by including imports of intermediates as a determinant of a country’s exports of final goods. We find a positive and significant effect of the EU-accession on CEECs trade in intermediate and final goods. Hence, the elimination of “behind the border” trade barriers has a positive impact on increasing not only trade volumes but also trade varieties.

Suggested Citation

  • Inmaculada Martínez-Zarzoso & Anca M. Voicu & Martina Vidovic, 2012. "CEECS integration into regional production networks. Trade effects of EU-accesion," Working Papers 2012/04, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2012/04
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    More about this item

    Keywords

    gravity equation; panel data; production networks; economic integration; trade flows.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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