Assessing the enlargement and deepening of regional trading blocs: The European Union case

1. Gil Pareja, Salvador
2. Llorca Vivero, Rafael
3. Martínez Serrano, José Antonio

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Resumen

This paper analyses trade effects of the European Union both from the enlargement and deepening perspectives. In the first case, we examine whether the order of entry into the EU has affected the trade performance of member countries. In the second case, we study the impact of the different phases of integration on trade. We estimate a conventional gravity model over the period 1950-2004. Our results show that the original members did not increase trade with each other in a significant greater magnitude than some of later entrants. Moreover, we find that, in general, the deepening in the integration process has led to more trade creation among members.

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