Journal article | Zeitschriftenartikel
On the bilateral trade effects of free trade agreements between the EU-15 and the CEEC-4 countries
The expansion of regionalism has spawned an extensive theoretical literature analysing the effects of free trade agreements (FTAs) on trade flows. In this paper we focus on FTAs (also called European agreements) between the European Union (EU-15) and the Central and Eastern European countries (CEEC-4, i.e. Bulgaria, Hungary, Poland and Romania) and model their effects on trade flows by treating the agreement variable as endogenous. Our theoretical framework is the gravity model, and the econometric method used to isolate and eliminate the potential endogeneity bias of the agreement variable is the fixed effect vector decomposition (FEVD) technique. Our estimation results indicate a positive and significant impact of FTAs on trade flows. This finding is robust to the inclusion in the sample of a group of control countries (specifically Belarus, the Russian Federation and the Ukraine) that did not sign an FTA. Besides, we show that trade growth after the FTA agreement with the EU was signed exceeded trade growth of the control group of countries, which did not become members.
- Extent
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Seite(n): 189-206
- Language
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Englisch
- Notes
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Status: Postprint; begutachtet (peer reviewed)
- Bibliographic citation
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Review of World Economics, 145(2)
- Subject
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Wirtschaft
Wirtschaftspolitik
Volkswirtschaftslehre
Wirtschaftssektoren
- Event
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Geistige Schöpfung
- (who)
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Caporale, Guglielmo Maria
Rault, Christophe
Sova, Robert
Sova, Anamaria
- Event
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Veröffentlichung
- (where)
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Deutschland
- (when)
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2009
- DOI
- URN
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urn:nbn:de:0168-ssoar-203184
- Rights
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GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
- Last update
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21.06.2024, 4:26 PM CEST
Data provider
GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln. If you have any questions about the object, please contact the data provider.
Object type
- Zeitschriftenartikel
Associated
- Caporale, Guglielmo Maria
- Rault, Christophe
- Sova, Robert
- Sova, Anamaria
Time of origin
- 2009
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On the bilateral trade effects of free trade agreements between the EU-15 and the CEEC-4 countries
On the bilateral trade effects of free trade agreements between the EU-15 and the CEEC-4 countries
Bilateral trade agreements and the world trading system
Bilateral trade agreements and trade distortions in agricultural markets?
Bilateral trade agreements and trade distortions in agricultural markets
Mars or Mercury redux: The geopolitics of bilateral trade agreements
A sensitivity analysis on the impact of regional trade agreements in bilateral trade flows
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