How integrated is the world economy?

Bowen, Harry P.; Munandar, Haris; Viaene, Jean-Marie

doi:10.1007/s10290-010-0061-y

Cited by 6 publications

(9 citation statements)

References 20 publications

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“…As part of future work, it would be interesting to also examine the depth of bilateral trade agreements. Bowen et al (2010), for example, measure the degree of economic integration across a range of RTAs. For the entire set of PTAs in force and notified to the WTO, Hofmann et al (2019) evaluate the changing scope of PTAs over time.…”

Section: Counterfactual Predictionsmentioning

confidence: 99%

EU economic integration agreements, Brexit and trade

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Bliss

2020

Rev World Econ

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The effects of regionalism on trade have been extensively evaluated within a gravity model framework. With the expected exit of the United Kingdom (UK) from the European Union (EU), the prospect of regional disintegration has brought about a new impetus to studying trade policy effects. Using actual and forecast data for a panel of bilateral imports between the EU15 and the rest of the world, this paper examines the trade effects of EU economic integration agreements (EIAs), their evolution over time and the related counterfactual Brexit trade policy scenarios. Distinct trade effects are obtained for the EU trade related agreements; positive, significant and of similar magnitude for the EU and free trade agreement (FTA) coefficients, but negative and significant (and smaller in magnitude) for the regional economic partnership agreements (EPAs). The subperiod results suggest the positive coefficients of EU and FTA membership tend to diminish over time, implying earlier membership of EIAs came with greater trade benefits. Finally, in generating the predicted values for the trade effects of three alternative counterfactual Brexit scenarios (hard Brexit, hard Brexit plus, global Britain), the findings suggest an asymmetric effect depending on the perspective of the UK versus the EU. Whereas the UK's trade would decline substantially with all three country groups (the EU, the FTAs and regional EPAs) and rise substantially with the rest of the world, only minor percentage changes are predicted for EU bilateral trade.

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Section: Counterfactual Predictionsmentioning

confidence: 99%

EU economic integration agreements, Brexit and trade

Stack

Bliss

2020

Rev World Econ

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“…We have indicated three main approaches. Approach #1 (Bowen et al 2010. Authors derive three theoretical propositions regarding the distribution of output and the stocks of productive factors expected to arise among the members of a fully integrated economic area (IEA) in which goods and factors are freely mobile and policies are harmonized.…”

Section: Different Methods Of Economic Integration Measuringmentioning

confidence: 99%

“…This latter result is significant, since it means that the relative position of each IEA member only depends on the total number of members. This methodology was proposed by Bowen et al (2010Bowen et al ( , 2011. They assess the level of economic integration between the U.S. states and EU members, based on Regional Trade Agreements.…”

Section: Different Methods Of Economic Integration Measuringmentioning

confidence: 99%

“…The third section summarizes the main findings. Bowen et al (2010Bowen et al ( , 2011 consider the distribution of output and production factors among the members of an integrated economic space (IES), in which goods and factors of production (resources) are mobile and policies are harmonized. Thus, as an IES, we shall consider the national economy of Romania (set of regional economies), and by the members of the IES -the Romanian regions.…”

Section: Evaluation Of Localization Reviewmentioning

confidence: 99%

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Spatial Distribution of Economic Activities and Internal Economic Integration in Romania

Yaskal¹,

Maha²,

Petrashchak³

2020

JURA

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This paper aims to consider two tendencies in economy simultaneously: internal integration within the country and localization of economic activities. Firstly, we examine the quantitative measurement of internal economic integration in Romania. Different methods of economic integration measuring have been developed over time, so we have defined and discussed three approaches. To estimate a level of internal integration the link between the region's share in the total output and production factors was estimated and the pattern of distribution of these shares among the regions of Romania was assessed. The calculations have underlined an increasing tendency to deepen the internal economic integration of the Romanian economy. Secondly, the analysis of spatial distribution of economic activity has demonstrated that the capital region Bucharest-Ilfov concentrates the biggest share of employment and production. This indicates that initially there were higher economic activities and a labor deficit has been created, which was later covered by moving employees from other regions. As a result, the capital region concentrates 14.35% of the civil economically active population and 26.78% of the regional gross domestic product in 2014. By computing the location coefficient, we have observed that the counties with the biggest shares in the total GDP are characterized by a higher level of specialization simultaneously in many sectors.

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“…3 3 The Cobb–Douglas specification has wide empirical support (e.g., Mankiw, Romer, and Weil, 1992). By analogy, the analysis can be extended to the case where the production function has the constant elasticity of substitution form (Bowen, Munandar, and Viaene, 2010). …”

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confidence: 99%

Are Eu Countries Less Integrated Than U.S. States? Theory and Evidence*

Bowen¹,

Munandar²,

Viaene³

2011

Journal of Regional Science

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A belief that EU integration is incomplete is often predicated on a comparison to U.S.states. Yet, with low barriers to trade and factor mobility between EU countries, is this belief correct? To address this question, we develop three theoretical predictions regarding the distribution of output and factors across members of an integrated economic area with harmonized policies and free movement of goods and factors. Empirical tests strongly support these predictions for U.S. states and 14 EU countries. Constructing a measure of integration, we find that EU integration rose from the 1960s to equal that of U.S. states by 2000.

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How integrated is the world economy?

Cited by 6 publications

References 20 publications

EU economic integration agreements, Brexit and trade

EU economic integration agreements, Brexit and trade

Spatial Distribution of Economic Activities and Internal Economic Integration in Romania

Are Eu Countries Less Integrated Than U.S. States? Theory and Evidence*

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