Abstract
For some 30 years, European construction occurred in a Europe divided into two sides: on the one hand, ‘Western Europe’ and capitalism, and on the other hand, ‘Eastern Europe’ and socialism. Trade between these two sides was reduced to a minimum. The breakdown of socialism in Eastern Europe at the end of the 1980s led to immediate negotiations between the two sides, and ended in the European Union (EU) enlargement to eight Central and Eastern European Countries (CEECs: Estonia, Hungary, Latvia, Lithuania, Poland, Czech Republic, Slovakia, Slovenia) in May 2004, followed by the membership of two new countries (Bulgaria and Romania) in January 2007. The strong reorientation of trade from East to West, together with a rapid growth of trade between the EU and the CEECs, which will be pointed out in the second section of this chapter, led to a strong integration between Eastern and Western Europe. It therefore seems relevant to ask whether this integration process is completed, at least for some countries.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
J. Anderson and E. van Wincoop (2004) ‘Trade costs’, Journal of Economic Literature, 42 (3), 691–751.
J. Anderson and E. van Wincoop (2003) ‘Gravity with gravitas: A solution to the border puzzle’, American Economic Review, 93 (1), 170–192.
S. Baier and J. H. Bergstrand (2002) ‘On the endogeneity of international trade flows and free trade agreements’, American Economic Association Annual Meeting,Atlanta.
S. Baier and J. H. Bergstrand (2001) ‘The growth of world trade: Tariffs, transport costs, and income similarity’, Journal of International Economics, 53, 1–27.
R. Baldwin (1993) ‘The potential for Trade between the countries of EFTA and Central and Eastern Europe’, CEPR Discussion Paper Series, No. 853.
J. H. Bergstrand (1985) ‘The gravity equation in international trade: Some microeconomic foundations and empirical evidence’, The Review of Economics and Statistics, 67 (3), 474–480.
J. H. Bergstrand (1989) ‘The generalized gravity equation, monopolistic competition, and the factor-proportions theory in international trade’, The Review of Economics and Statistics, 71 (1), 143–53.
J-F. Brun, C. Carrère, P. Guillaumont and J. de Melo (2002) ‘Has distance died? Evidence from a panel gravity model’, CEPR Discussion Paper No. 3500.
C. Carrère (2006) ‘Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model’, European Economic Review, 50, 223–47.
S.M. Collins and D. Rodrik (1991) ‘Eastern Europe and the Soviet union in the world economy’, Policy Analyses in International Economics, No. 32.
P. Egger (1999) ‘A note on the proper econometric specification of the gravity equation’, WIFO Working Paper, 99–108.
P. Egger and M. Pfaffermayr (2003) ‘The proper panel econometric specification of the gravity equation: A three-way model with bilateral interaction effects’, Empirical Economics, 28, 571–80.
S. J. Evenett and W. Keller (2002) ‘On theories explaning the success of the gravity equation’, Journal of Political Economy, 110 (2), 281–316.
R. Feenstra (2003) Advanced International Trade, Princeton University Press, Princeton, NI.
F. Festoc (1997) ‘Le potentiel de croissance du commerce des pays d’Europe centrale et orientale avec la France et ses principaux partenaires’, Economie et Prévision, No. 128, 161–81.
D. Gros and A. Gonciarz (1995) ‘A Note on the Trade Potential of Central and Eastern Europe’, journées AFSE, Intégration Economique Européenne, Nantes.
A. Hausman and E. Taylor (1981) ‘Panel data and unobservable individual effects’, Econometrica, 49, 1377–98.
O. Havrylyshyn and L. Pritchett (1991) ‘European trade patterns after the transitions’, PRE Working Paper Series, No. 748.
E. Helpman and P. Krugman (1985) Market structure and foreign trade: increasing returns, imperfect comptetition and the international economy, MIT Press, Cambridge, MA.
Z.M. Jakab, M.A. Kovacs and A. Oszlay (2001) ‘How far has trade integration advanced? An analysis of the actual and potential trade of three Central and Eastern European countries’, Journal of Comparative Economics, 29 (2), 276–92.
L. Matyas (1997) ‘Proper econometric specification of the gravity model’, World Economy, 20 (3), 363–368.
L. Matyas (1998) ‘The gravity model: Some econometric considerations’, World Economy, 21 (3), 397–401.
T. Paas (2003) ‘Regional Integration and International Trade in the Context of EU Eastwards Enlargement’, HWWA Discussion Paper 218, Hamburg Institute of International Economics.
N. Peridy (2006) ‘La nouvelle politique de voisinage de l’Union européenne, une estimation des potentiels de commerce’, Revue économique, 57 (4), 727–46.
A. Rose and E. van Wincoop (2001) ‘National money as a barrier to international trade: The real case for currency union’, American Economic Review, 91 (2), 386–90.
D. Schumacher (1995–1996) ‘L’ouverture des économies d’Europe Centrale et Orientale: Impact sur les échanges extérieurs et l’emploi de la France et de l’Allemagne’, rapports du sénat, UE: les conséquences économiques et budgétaires de l’élargissement à l’Est, No. 228, 69–117.
L. Serlenga and Y. Shin (2004) ‘Gravity models of the Intra-EU trade: Application of the Hausman-Taylor estimation in heterogeneous panels with common time\specific factors’, mimeo.
A. Winters and Z.K. Wang (1991) ‘The Trading Potential of Eastern Europe’, CEPR Discussion Paper Series, No. 610.
Editor information
Copyright information
© 2010 Frédérique Festoc-Louis and Nolwenn Roudaut
About this chapter
Cite this chapter
Festoc-Louis, F., Roudaut, N. (2010). Is European Trade Integration Completed? Perspectives for CEE Countries. In: Marelli, E., Signorelli, M. (eds) Economic Growth and Structural Features of Transition. Studies in Economic Transition. Palgrave Macmillan, London. https://doi.org/10.1057/9780230277403_9
Download citation
DOI: https://doi.org/10.1057/9780230277403_9
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-31407-2
Online ISBN: 978-0-230-27740-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)