The Relationship between Trade and Industry Structure – Evidence from some EU New and Old Members
Posted: 12 Oct 2011 Last revised: 13 Oct 2018
Date Written: July 11, 2011
The study is a bi-directional study on the correlation of the trade and industry structure; two factors with a strong impact on the economic growth of countries. The analysis consists of extensive and detailed research on literature used in the development of the model which is tested empirically with data from the EU new and old member countries. It is a quantitative, inferential study with a general use of descriptive statistics.
The results indicate that from the new EU states, Bulgaria is an absolute winner, with a move of the economy into the higher value-added sectors. Slovakia is a relative looser, while from the old EU member states, Spain has benefited the most from the EU enlargement.
The findings emphasize an existence of a connection between the two variables when the gravity model is used. It supports the findings of the previous empirical research in the area.
Keywords: International Trade, Industry specialization, EU
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