Capital and Trade Flows in Europe and the Impact of Enlargement
Kiel Working Paper No. 1001
50 Pages Posted: 10 Nov 2000
There are 2 versions of this paper
Capital and Trade Flows in Europe and the Impact of Enlargement
Date Written: September 2000
Abstract
The Eastern enlargement of the European Union (EU) is likely to give a further boost to trade and capital flows, yet empirical evidence on the possible magnitudes is still scarce. This paper uses four different datasets to estimate the determinants of international asset holdings and trade flows. We find in most regressions that EU membership has a significant effect. Based on additional simulations of the expected flows to ten transition economies, we conclude that for the EU candidates actual values are still far below expected ones in most cases. Consequently, we anticipate rising capital and trade flows with the approach of EU accession, in particular for the seven EU candidates besides the Czech Republic, Hungary and Poland.
JEL Classification: F15, F17, F21, F36
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Does the East Get What Would Otherwise Flow to the South? FDI Diversion in Europe
By Claudia M. Buch, Robert M. Kokta, ...
-
Economic Integration, Similarity and Convergence in the EU and Ceecs Trade Structures
By Luca De Benedictis and Lucia Tajoli
-
Price Support at Any Price? Costs and Benefits of Alternative Agricultural Policies for Poland
-
Investment Behavior in Dynamic Computable General Equilibrium Models for Transition Economies
-
What Gravity Models Can Tell Us About the Position of German FDI in Central and Eastern Europe
By Christina Borrmann, Rolf Jungnickel, ...
-
Trade Integration between Eastern and Western Europe: Politics Follows the Market