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Trade integration between Eastern and Western Europe: Politics follows the market

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  • Piazolo, Daniel

Abstract

This paper examines to what extent Eastern Europe trade reorientation towards the West has been driven by market forces versus policies for regional integration. Hierarchical cluster analysis based on bilateral trade intensity reveals the convergence of regional trade structures to the pre-World-War II pattern. Estimates of the expected trade pattern of Eastern Europe with a gravity model predict continuing rising importance of the EU. Furthermore, the assessment of the welfare implications of preferential access to EU markets shows that beneficial effects of trade expansion are likely to outweigh possible distortions. Hence integration policies follow the facts created by the market.

Suggested Citation

  • Piazolo, Daniel, 1996. "Trade integration between Eastern and Western Europe: Politics follows the market," Kiel Working Papers 745, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:745
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    Cited by:

    1. Carraresi, Laura & Banterle, Alessandro, 2015. "Agri-food Competitive Performance in EU Countries: A Fifteen-Year Retrospective," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(2), pages 1-26, May.
    2. Lücke, Matthias, 1997. "Accession of CIS countries to the World Trade Organisation," Kiel Working Papers 796, Kiel Institute for the World Economy (IfW Kiel).
    3. Gerhard Palme, 1998. "Auswirkungen der EU-Osterweiterung auf die österreichische Sachgüterproduktion. Ostöffnungseffekte beleben österreichische Industrie," WIFO Monatsberichte (monthly reports), WIFO, vol. 71(11), pages 761-769, November.
    4. Lev Freinkman & Evgeny Polyakov & Carolina Revenco, 2004. "Trade Performance and Regional Integration of the CIS Countries," World Bank Publications - Books, The World Bank Group, number 14933.
    5. Potratz, Wolfgang (Ed.) & Widmaier, Brigitta (Ed.), 1998. "East European integration and new division of labour in Europe: Workshop documentation," Graue Reihe des Instituts Arbeit und Technik 1998-09, Institut Arbeit und Technik (IAT), Westfälische Hochschule, University of Applied Sciences.
    6. Szalavetz, Andrea & Lücke, Matthias, 1997. "Export reorientation and transfer of know-how and technology: the case of Hungarian manufactured exports," Kiel Working Papers 801, Kiel Institute for the World Economy (IfW Kiel).
    7. Lücke, Matthias, 1996. "Die Auswirkungen des Handels mit Mittel- und Osteuropa auf den deutschen Arbeitsmarkt," Open Access Publications from Kiel Institute for the World Economy 1676, Kiel Institute for the World Economy (IfW Kiel).
    8. Gerhard Palme, 1999. "Impacts of an EU Eastern Enlargement on Austria's Manufacturing. Eastern Opening Stimulates the Austrian Industry," Austrian Economic Quarterly, WIFO, vol. 4(1), pages 65-74, January.
    9. Nunnenkamp, Peter, 1997. "Latin America and EU widening to the East: possible effects on trade and investments," Kiel Working Papers 828, Kiel Institute for the World Economy (IfW Kiel).
    10. Éltető, Andrea, 2003. "Versenyképesség a közép-kelet-európai külkereskedelemben [Competitiveness in Central and Eastern European foreign trade]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 269-281.

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