Integration, Disintegration and Trade in Europe: Evolution of Trade Relations During the 1990s

ZEI Working Paper No. B3/2000, CentER Working Paper No. 2000-12

32 Pages Posted: 15 Mar 2000  

Jarko Fidrmuc

Zeppelin University Friedrichshafen

Jan Fidrmuc

Brunel University - Department of Economics and Finance; Centre for Economic Policy Research (CEPR); University of Michigan at Ann Arbor - The William Davidson Institute

Date Written: January 2000

Abstract

The gravity model of trade is used to assess the economic consequences of new borders, which arose in the wake of break-ups of multinational federations in Eastern Europe. The intensity of trade relations among the constituent parts of Czechoslovakia, Soviet Union and the Baltics was very high around the time of disintegration, exceeding the normal level of trade approximately 40 times. Disintegration has been followed by a sharp fall in trade intensity. On the other hand, the trade liberalization between East and West has lead to gradual normalization of trade relations, and liberalization within CEFTA has reversed the fall in trade intensity among Central European countries.

JEL Classification: F13, F15, F41

Suggested Citation

Fidrmuc, Jarko and Fidrmuc, Jan, Integration, Disintegration and Trade in Europe: Evolution of Trade Relations During the 1990s (January 2000). ZEI Working Paper No. B3/2000, CentER Working Paper No. 2000-12. Available at SSRN: https://ssrn.com/abstract=213549 or http://dx.doi.org/10.2139/ssrn.213549

Jarko Fidrmuc

Zeppelin University Friedrichshafen ( email )

Am Seemooser Horn 20
Friedrichshafen, 88045
Germany

Jan Fidrmuc (Contact Author)

Brunel University - Department of Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom
+44 1895 266 528 (Phone)
+44 1895 269 770 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

University of Michigan at Ann Arbor - The William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

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