Accession to the WTO and EU Enlargement: What Potential for Trade Increase?
32 Pages Posted: 17 Jul 2003
Date Written: June 2003
Abstract
This Paper asks the question of the impact of institutions on trade and tries to estimate the potential for trade increase between CIS, Central Eastern European countries and the EU. The latter is computed using the gravity equation and the procedure introduced by Hausman and Taylor (1981). It is shown that CIS trade is still characterized by a very large trade destruction effect, which implies that trade with EU countries could increase in the long-run in proportion to this trade destruction effect. Furthermore, institutions matter, and the convergence of institutional variables towards the EU standards - under the current process of EU enlargement and application of Russia to join the WTO - can be expected to deepen the level of the European trade integration.
Keywords: Institutions, accession to the WTO, EU enlargement, gravity equation, transition
JEL Classification: C10, F10, P20
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Institutional Determinants of Bilateral Trade Patterns
By Henri L. F. De Groot, Gert-jan Linders, ...
-
Cultural and Institutional Determinants of Bilateral Trade Flows
By Gert-jan Linders, Arjen Hl Slangen, ...
-
Trade Implies Law: The Power of the Weak
By James E. Anderson and Leslie Young
-
The Impact of Mode 4 Liberalization on Bilateral Trade Flows
By Marion Jansen and Roberta Piermartini
-
The Impact of Mode 4 Liberalization on Bilateral Trade Flows
By Marion Jansen and Roberta Piermartini
-
Imperfect Contract Enforcement
By James E. Anderson and Leslie Young