Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46244
Authors: 
Caporale, Guglielmo Maria
Rault, Christophe
Sova, Robert
Sova, Anamaria
Year of Publication: 
2011
Series/Report no.: 
CESifo working paper: Trade Policy 3340
Abstract: 
This paper analyses the trade balance effects of Europe agreements (EA) between the EU-15 and four new EU members from Central and Eastern Europe (CEEC-4) using both static and dynamic panel data approaches. Specifically, the system Generalized Method of Moments (GMM, Blundell and Bond, 1998) and recently developed econometric methods such as the Correlated Common Estimation Pooled - Hausman-Taylor (CCEPHT, Serlenga and Shin, 2007) are applied to analyse the effects of the agreement variable. Our estimation results indicate a positive and significant impact of EA on trade flows. However, there is an asymmetric impact of the agreement variable on the trade balance, exports and imports being affected in different ways, which results in a trade balance deficit in the CEEC-4.
Subjects: 
regionalisation
trade flows
trade balance
panel data methods
JEL: 
E61
F13
F15
C25
Document Type: 
Working Paper

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