Trade Creation and Trade Diversion in the European Union after Creation of Single Market
Trade Creation and Trade Diversion in the European Union after Creation of Single Market
Author(s): Bianka BittmannovaSubject(s): Supranational / Global Economy, International relations/trade, Economic development, Transformation Period (1990 - 2010), EU-Accession / EU-DEvelopment
Published by: Reprograph
Keywords: economic integration; efficiency of European integration; trade creation; trade diversion; trade creation and trade diversion;
Summary/Abstract: The paper analyses the impact of creation of Single European Market in the European Union on the world economy. To test empirically if there have been some effects of trade creation or trade diversion in the trade flows of the European Community, the simplified version of the gravity model regression with appropriate dummy variables for the European Union membership are used. The analyses throughout the years 1992, 1993 and 1994 conducted with data for 14 countries (7 member countries of EU and 7 third countries) shows, that even though the EU membership of both countries affects the exports of one to the other member country positively, there is no evidence of the trade creation effect in 1993, when theSingle European Market as such had been created.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XI/2016
- Issue No: 44
- Page Range: 1177-1181
- Page Count: 5
- Language: English