Search results for "Trade creation"
showing 5 items of 5 documents
Assessing the Enlargement and Deepening of the European Union
2008
This paper estimates a theoreticallymotivated gravity model to examine the effect of the European Union (EU) on trade and whet her the order of entry has affected the trade performance of member countries. Additionally, we analyse the impact of the diffe rent phases of EU integration on trade. The results show that both original countries and successive enlargements boost intra-b loc trade. Moreover, the results suggest that the deepening in the integration process has led to more trade creation among members. Finally, only the latter ph ase of the European integration process (the single currency) has increased trade with non-members.
Regional Integration in Trade Theory
2021
Given widespread scepticism in trade economics about the value of RECs comprised of developing countries, the formal theory of regional economic integration is critically examined in four stylized configurations. Based on the overarching logic of trade creation and diversion, the usual diagrammatic treatment of tariff effects is critically discussed in terms of its numerous shortcomings. A single-country and REC-wise diagrammatic treatment of tariffs in the presence of increasing returns is proposed to allow quantitative assessment of the arguably most promising case for South-South RECs. Building on the literature, the cases of full and incomplete specialization within a regional group are…
Trade effects of monetary agreements: Evidence for OECD countries
2008
Abstract This paper analyses the effects of monetary agreements on trade flows using a sample of 25 OECD countries over the period 1950–2004. We find that these agreements have boosted intra-bloc trade. This result especially applies to the case of the euro. More importantly, in contrast to regional trade agreements, all monetary agreements analysed show evidence of trade-creating effects with third countries. Finally, only the euro shows a symmetric impact for the trade-creating effect with non-members, that is, using the euro promotes both the Eurozone's exports and its imports to non-Eurozone markets to a similar extent.
The Trade Creation Effect of Immigrants: Evidence from the Remarkable Case of Spain
2010
There is abundant evidence that immigrant networks are associated with larger exports from the country where they settle to their countries of origin. The direction of causality of this association is less clearly established. Also, we do not know to what extent these increased exports are due to an increase in the number of exporting firms (i.e. the extensive margin of trade) or due to larger values exported by existing firm (i.e. the intensive margin). Using micro data on individual trade transactions from Spanish provinces between 1995 and 2008 and data on the stock of immigrants in those provinces by country of origin we can make progress on both fronts. The richness of our data allows …
Immigrants’ Networks, Distance, and Trade Creation Effects: An Study Employing Province-Level Data for Italy, Spain and Portugal
2014
Neoclassical trade theory assumed international flows of goods (commodities) to be substituting for people (factor) flows under certain circumstances. However, recent empirical evidence shows a complementary relationship between these two types of flows, with migration creating new trade exchanges. Immigrants tend to form networks across borders, reducing fixed trade costs. They also retain some preference for their home-produced goods. These two channels provide the rationale of the immigration trade-enhancing linkage. In this study we investigate that issue for the cases of Italy, Spain and Portugal, employing province-level data for the period 2002–2010. Results show that the first chann…