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| Author: | Badinger, H. Breuss, F. |
| Title: | What has determined the rapid post-war growth of intra-EU trade? |
| Journal: | Review of World Economics
2004 : VOL. 140:1, p. 31-51 |
| Index terms: | European Union International trade Growth Integration Models |
| Language: | eng |
| Abstract: | Based on the gravity model by Baier and Bergstrand (2001), this study uses a static and dynamic panel approach to estimate the determinants of the growth of intra-EU trade from 1960 to 2000. The results suggest that income growth was the major force, accounting for approximately 2/3 of total growth. Trade liberalization still had sizeable effect, while other factors had only little impact (income convergence, exchange rate changes) or played no role (trade costs). This study's estimation results for intra-EU trade, using a variety of extensions, underline the robustness of the Baier-Bergstrand cross-section findings for world trade. |
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