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Title: Intra-European Trade of Manufacturing Goods: An Extension of the Gravity Model
Authors: VANCAUTEREN, Mark 
Weiserbs, Daniel
Issue Date: 2011
Publisher: Econometric Research Association
Source: International Econometric Review, 3(1). p. 1-24
Abstract: In this paper we propose and test several extensions of the standard gravity model. This yields a specification that allows for (i) a more flexible income response; (ii) a competitiveness effect with a general and a specific component; and (iii) an alternative and consistent measure of remoteness. Those extensions were found to be significant factors to explain intra-EU trade. Next, we analyze the effect of EU harmonization of technical regulations on domestic and intra-EU trade. We find, at different levels of aggregation of the manufacturing sector, that harmonization of regulations has contributed to more intra-EU trade, but, apparently did not affect the so-called border effect.
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ISSN: 1308-8793
Category: A1
Type: Journal Contribution
Validations: vabb 2012
Appears in Collections:Research publications

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