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

摘要

This paper contributes to the discussion on the role of new regionalism for bilateral trade volumes. It concentrates on the EU and, in contrast to previous research, on the pattern of the intra-EU integration effects with a special focus on trade within and between the EU core and periphery. We use a parsimonious reduced-form gravity model as in Helpman (1987) and set up a rigorous, nested analysis of covariance framework, where the integration effects are measured by a comprehensive set of integration group dummies, which vary over integration phases. Equivalent to difference-in-difference estimates, this allows the isolation of the EU integration effects on trade volumes as claimed in Srinivasan (1998).