Trade Effects of the Europe Agreements

Julia Spies, Helena Marques
2008 Social Science Research Network  
The eastern enlargement of the European Union (EU) brought and will bring full membership to countries whose trade barriers with the EU had to a large extent already been removed under Free Trade Agreements (FTAs) during the 1990s. We employ a theory-based new version of a gravity equation, whose specification allows for an assessment of the impact of the arrangements on extra-and intra-group imports. We find robust evidence that the agreements have substantially increased intra-group trade, in
more » ... the case of the Czech and Slovak Republic at the expense of the Rest of the World (ROW). * JEL classification: F15, C23
doi:10.2139/ssrn.1171023 fatcat:p3nvoe5amndjndg562msqdwjey