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Volume and comparative advantage in East-West trade
TLDR
In this article, the volume and commodity structure of EU trade with the transition countries in central and eastern Europe (CEECs) is estimated on the assumption that it will follow the pattern of trade among market economies.Abstract:
The volume and commodity structure of EU trade with the transition countries in central and eastern Europe (CEECs) is estimated on the assumption that it will follow the pattern of trade among market economies. A gravity-type approach at the level of product groups is used, combining geography and factor-proportions theory of international trade. It is shown that there is still considerable potential for a further rise in East-West trade if the CEECs' national product is valued at purchasing power parities, instead of market exchange rates. Considering divergent income levels and distance between East and West, the EU's comparative advantages are in specialised-supplier, scale-intensive and science-based goods, whereas the CEECs' comparative advantages are in labour-intensive and resource-intensive goods. The intersectoral specialisation pattern will become "flatter" and the share of intra-industry trade will grow when the income differentials decrease.read more
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The Trading Potential of Eastern Europe
Zhen Kun Wang,L. Winters +1 more
TL;DR: The authors fit a gravity model to the trade of 76 market economies and applied the model to data on East European economies to estimate what their trading potential might have been, had behaved like market economies in the mid-1980s.
Rules of Origin: A World Map and Trade Effects
TL;DR: In this paper, the authors present a comparative analysis of the main RoO regimes, measure the degree of restrictiveness and selectivity of product-specific RoO employed in the various RoO regime, and put forth a facilitation index to capture the extent of flexibility instilled in RoOs regimes by various regime-wide RoO.
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EU Trade with the Balkans : Large Room for Growth?
TL;DR: In this paper, the potential for growth in trade between the European Union and the Western Balkans was evaluated using a gravity model and it was shown that trade policy, alongside geographical proximity, plays an important role in shaping trade patterns, and that EU trade with two Balkan countries, Bulgaria and Romania, is close to or in some cases exceeds the values predicted by the model.
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EMU, EU enlargement, and the European Social Model: Trends, challenges, and questions
TL;DR: In this article, the authors discuss mogliche Folgewirkungen der gleichzeitigen Herausforderung des 'Europaischen Sozialmodells' durch die Europaische Wahrungsunion and the Erweiterung der EU um mittel-and osteuropaische Lander.
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Estimating Gravity Models of International Trade with Correlated Time-Fixed Regressors: To IV or not IV?
TL;DR: In this paper, the authors compare the performance of instrumental-variable (IV) and non-IV approaches in the presence of time-fixed variables and right hand side endogeneity using Monte Carlo simulations.
References
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Journal ArticleDOI
The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence
TL;DR: The gravity equation has been widely recognized for its consistent empirical success in explaining many different types of flows, such as migration, commuting, tourism, and commodity shipping as mentioned in this paper, but its use for predictive purposes has been inhibited owing to an absence of strong theoretical foundations.
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The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade
TL;DR: In this article, a general equilibrium model of world trade with two differentiated-product industries and two factors is developed to illustrate how the gravity equation, including exporter and importer populations, as well as incomes, "fits in" with the Heckscher-Ohlin model of inter-industry trade and the Helpman-Krugman-Markusen models of intraindustry trade.
Book
North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World
TL;DR: The authors showed that the expansion of North-South trade in manufactures has had a far greater impact on labour markets than earlier work suggested, and that the best solution for the longer term in the North is more investment in education, to raise the supply of skilled labour.
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Immigration and Trade Creation: Econometric Evidence from Canada
Keith Head,John Ries +1 more
TL;DR: The authors found that a 10 percent increase in immigrants is associated with a 1 percent increase of Canadian exports to the immigrant's home country and a 3 percent of increase in imports to Canada.