Template-Type: ReDIF-Article 1.0
Author-Name:  Mark Vancauteren
Author-Email: mark.vancauteren@uhasselt.be
Author-Workplace-Name: Universiteit Hasselt
Author-Name:  Daniel Weiserbs
Author-Email: weiserbs@ires.ucl.ac.be
Author-Workplace-Name: Université catholique de Louvain
Title:  Intra-European Trade of Manufacturing Goods: An Extension of the Gravity Model
Abstract:  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.
Classification-JEL: F11, F14, F15
Keywords: Trade, EU Countries, Gravity Equation, Border Effects.
Journal: International Econometric Review
Pages: 1-24
Volume: 3
Issue: 1
Year: 2011
Month: April
File-URL: http://www.era.org.tr/makaleler/3100020.pdf
File-Format: Application/pdf
Handle: RePEc:erh:journl:v:3:y:2011:i:1:p:1-24