Border Effects and European Integration

Abstract

A new method for measuring trade potential from border effects is developed and applied to manufactured trade between the old fifteen European Union (EU) members and twelve Central and East European (CEE) economies. Border effects are estimated with three theoretically compatible trade specifications, and much larger trade potentials are obtained than usually predicted by standard trade potential models. Even after a decade of regional trade liberalization, the integration of CEE and EU economies is two to three times weaker than intra-EU integration, revealing a large potential for East-West European trade.

Home Sweet Home: The Home Bias in Trade in the European Union

“…In their analysis they employed both average measures of intranational distance, as well as effective distance measures recommended by Head and Mayer (2002). 3 The most comprehensive study up to date was conducted by Cheptea (2013), who was the first to document that the study of the home bias in Europe is the study of European integration. She argued that greater integration is expected to result in a decline of the home bias.…”

“…These issues will be addressed in more detail in later parts of this paper. The works by Nitsch (2000) and Cheptea (2013) are most closely related to this analysis, albeit they do not cover the issue of intermediate trade. The similarities relate to the sample (Cheptea, 2013) and methodology employed (Nitsch, 2000), and the study of the time (Nitsch, 2000) and geographical variation (Cheptea, 2013)…”

“…Nevertheless, in combination with the use of exporter and importer fixed effects they are standard practice in gravity analyses of the home bias (Chen, 2004;Manchin and Pinna, 2009;Cheptea, 2013). Their use makes the paper directly comparable with earlier studies, such as Chen ( 2004) and (Cheptea, 2013). output table of the industry-by-industry type was used.…”

Disappearing Borders in the Visegrad Countries

“…By examining the Central and Eastern European (CEE) region from this regard is able to contribute to the literature. Although a respectable number of researchers have dealt with the post socialist transformation of these countries, just a minority of them (Cheptea, 2010;Pásztor, 2014) have focussed directly on border effect estimations using the gravity model so far. Horvath et al (2008) for instance approached this problem through the fulfilment of the law of one price.…”

A külkereskedelem gravitációs modelljének alkalmazása Magyarország élelmiszer-gazdasági termékforgalmának vizsgálatában

“…Ezt követően több, az országok kapcsolatában a szakirodalom alapján vélhetően szerepet játszó kontroll változót alkalmaztam úgy, mint a közös nyelv, a közös határ, közös történelmi múlt (Paiva 2008, Angulo et al, 2011, Serrano -Pinilla 2012, Cheptea 2013, Melece -Hazners 2014, Said -Shelaby 2014, Bojnec -Fertő 2015. Előbbi kettő a szakirodalom alapján pozitívan befolyásolja a kereskedelmet.…”