Intra-European Trade of Manufacturing Goods: An Extension of the Gravity Model

International Econometric Review -Cilt 3, Sayı 1
Sayfalar: 1-24

Yazarlar

Mark Vancauteren

Universiteit Hasselt, Faculty Business Econ (KIZOK), BE 3590 Diepenbeek, Belgium

Daniel Weiserbs

Université catholique de Louvain, Faculté des sciences économiques, sociales, politiques et de communication, Place de l'Université B-1348 Louvain-la-Neuve, Belgium

Özet

In this paper, we propose and test several extensions of the standard gravity model. This yields a specification that allows for (i) a more flexible income response; (ii) a competitiveness effect with a general and a specific component; and (iii) an alternative and consistent measure of remoteness. Those extensions were found to be significant factors to explain intra-EU trade. Next, we analyze the effect of EU harmonization of technical regulations on domestic and intra-EU trade. We find, at different levels of aggregation of the manufacturing sector, that harmonization of regulations has contributed to more intra-EU trade but, apparently, did not affect the so called border effect.

Anahtar Kelimeler

TradeEU countriesGravity equationBorder effects

JEL Sınıflandırması

F11F14F15

DOI

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Dergi Bilgileri

Dergi Adı
International Econometric Review
Cilt / Sayı
3 / 1
Yayın Tarihi
Aralık 2024