Intra-European Trade of Manufacturing Goods: An Extension of the Gravity model

International Econometric Review

Mark Vancauteren¹  Daniel Weiserbs² 

[1] Universiteit Hasselt, Faculty Business Econ (KIZOK);Université catholique de Louvain, Faculté des sciences économiques, sociales, politiques et de communication;

关键词: Trade;    EU countries;    Gravity equation;    Border effects;   

DOI  :  

来源: DOAJ

【 摘 要 】

In this paper, we propose and test several extensions of the standard gravity model. This yields a specification that allows for (i) a more flexible income response; (ii) a competitiveness effect with a general and a specific component; and (iii) an alternative and consistent measure of remoteness. Those extensions were found to be significant factors to explain intra-EU trade. Next, we analyze the effect of EU harmonization of technical regulations on domestic and intra-EU trade. We find, at different levels of aggregation of the manufacturing sector, that harmonization of regulations has contributed to more intra-EU trade but, apparently, did not affect the so called border effect.

【 授权许可】

Unknown