The Pure Effects of European Integration on Intra-Eu Core and Periphery Trade

University of Innsbruck Economics Working Paper No. 02/01

25 Pages Posted: 25 Mar 2002

See all articles by Michael Pfaffermayr

Michael Pfaffermayr

University of Innsbruck - Department of Economics; Austrian Institute of Economic Research

Peter H. Egger

Ifo Institute for Economic Research - International Trade and Foreign Direct Investment; ETH Zürich; Ludwig-Maximilians University of Munich; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: 2002

Abstract

This paper analyzes the effects of EU integration on intra-EU trade volumes with a special focus on trade within and between the core and the periphery countries. We find that in all phases of integration core-periphery and intra-periphery growth of trade has experienced stronger positive effects than intra-core trade. An extrapolation of the estimation results suggests that intra-periphery trade and intracore trade will intensify in course of 'typical' additional enlargements at the expense of core-periphery trade. This suggests that either the old core will change or a second, new one may form.

Keywords: Gravity Models, Integration Effects, European Union

JEL Classification: F14, F15

Suggested Citation

Pfaffermayr, Michael and Egger, Peter H., The Pure Effects of European Integration on Intra-Eu Core and Periphery Trade (2002). University of Innsbruck Economics Working Paper No. 02/01, Available at SSRN: https://ssrn.com/abstract=304239 or http://dx.doi.org/10.2139/ssrn.304239

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