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The effects of the CEECS's accession on sectoral trade: A value added perspective

Author

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  • Kaplan, Lennart C.
  • Kohl, Tristan
  • Martínez-Zarzoso, Inmaculada

Abstract

International fragmentation of production and economic integration change the structure of international trade. Novel datasets reveal how production processes are unbundled across borders and connected internationally through Global Value Chains (GVCs). Yet, the impact of Economic Integration Agreements (EIAs) on GVCs is still poorly understood. This paper investigates how the accession of 10 Central and Eastern European Countries (CEECs) to the European Union (EU) affected trade in value added in Europe. Using a gravity model of international trade for a sample of 40 countries over the period 1995-2009, we find that EU accession mainly fostered Eastern entrants' integration in other CEECs' value chains. Smaller integration benefits arise for East-West trade in services stemming from low-skill value adding activities.

Suggested Citation

  • Kaplan, Lennart C. & Kohl, Tristan & Martínez-Zarzoso, Inmaculada, 2016. "The effects of the CEECS's accession on sectoral trade: A value added perspective," University of Göttingen Working Papers in Economics 272, University of Goettingen, Department of Economics.
    • Handle: RePEc:zbw:cegedp:272
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    Cited by:

    1. Steven Brakman & Harry Garretsen & Tristan Kohl, 2018. "Consequences of Brexit and options for a ‘Global Britain’," Papers in Regional Science, Wiley Blackwell, vol. 97(1), pages 55-72, March.
    2. Pierluigi Montalbano & Silvia Nenci & Laura Dell'Agostino, 2019. "A non-parametric re-assessment of the trade effects of the euro using value added data," Working Papers 9/19, Sapienza University of Rome, DISS.

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    More about this item

    Keywords

    economic integration; international fragmentation; gravity model; European Union;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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