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Regional Integration and International Trade in the Context of EU Eastward Enlargement

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  • Paas, Tiiu

Abstract

The paper aims to explore international trade flows of the countries involved in the EU eastward enlargement processes – the current EU members (EU15) and the candidate countries (CC12). The empirical results of the study allow us to conclude that the behaviour of bilateral trade flows within the countries involved in EU eastward enlargement accords to the normal rules of gravitation, having statistically significant spatial biases caused by the trade relations, between the Baltic Sea Region (BSR) countries (the BSR bias), the border countries (the border bias) and the EU member and candidate countries (the East-West bias). The East-West trade relations are still rather weakly developed and there is a statistically significant difference in international trade patterns between the two groups – the current EU members and the applicant countries. The lessons of the Baltic Sea Region in integrating countries with different economic and political backgrounds and developing bilateral trade relations are valuable in supporting EU eastward enlargement and the reintegration of new member countries into Europe.

Suggested Citation

  • Paas, Tiiu, 2003. "Regional Integration and International Trade in the Context of EU Eastward Enlargement," HWWA Discussion Papers 218, Hamburg Institute of International Economics (HWWA).
    • Handle: RePEc:zbw:hwwadp:26223
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    File URL: https://www.econstor.eu/bitstream/10419/19314/1/218.pdf
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    Citations

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    Cited by:

    1. Nazia Gul & Hafiz M. Yasin, 2011. "The Trade Potential of Pakistan: An Application of the Gravity Model," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(1), pages 23-62, Jan-Jun.
    2. Yeshineh, Alekaw Kebede, 2016. "Determinants and Potentials of Foreign Trade in Ethiopia: A Gravity Model Analysis," MPRA Paper 74509, University Library of Munich, Germany.
    3. Valeria Costantini & Francesco Crespi, 2015. "European enlargement policy, technological capabilities and sectoral export dynamics," The Journal of Technology Transfer, Springer, vol. 40(1), pages 25-69, February.
    4. Vladimír Baláž, 2005. "Regional Polarization under Transition: The Case of Slovakia," European Planning Studies, Taylor & Francis Journals, vol. 15(5), pages 587-602, March.
    5. Virag-Neumann, Ildiko, 2016. "Analysing EU Sectoral Trade Integration with Gravity Model of Trade," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2016), Rovinj, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Rovinj, Croatia, 8-9 September 2016, pages 29-36, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    6. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or else? Free trade agreements in the 'enlarged' European Union," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 2(2), pages 245-260, December.
    7. Julia Spies & Helena Marques, 2006. "Trade Effects of the Europe Agreements," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 274/2006, Department of Economics, University of Hohenheim, Germany.
    8. Roberta De Santis & Claudio Vicarelli, 2007. "The “deeper” and the “wider” EU strategies of trade integration.An empirical evaluation of EU Common Commercial Policy effects," ISAE Working Papers 79, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    9. Glediana Zeneli (Foto) & Arsen Benga & Altin Hoti, 2024. "Analysis of Albania’s Trade Direction: Is the Open Balkan a New Center of Gravity?," Economies, MDPI, vol. 12(7), pages 1-30, July.
    10. Fabry, Nathalie & Zeghni, Sylvain, 2006. "FDI in the New European Neighbours of Southern Europe: a quest of institutions-based attractiveness," MPRA Paper 1109, University Library of Munich, Germany.
    11. Tiiu Paas & Egle Tafenau, 2004. "The Baltic Sea Region’s Role in Trade Integration," University of Tartu - Faculty of Economics and Business Administration, in: Tiiu Paas & Egle Tafenau (ed.), Modelling the Economies of the Baltic Sea Region, edition 1, volume 17, chapter 3, pages 92-115, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    12. repec:bla:jcmkts:v:45:y:2007:i::p:611-632 is not listed on IDEAS
    13. Maria Paula Fontoura & Nuno Crespo, 2004. "Integration of CEECs into EU Markets: Structural Change and Convergence," Working Papers Department of Economics 2004/15, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

    More about this item

    Keywords

    EU enlargement; the Baltic Sea Region; integration; international trade; gravity models;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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