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

J. Fidrmuc, J. Fidrmuc

    Research output: Working paperDiscussion paperOther research output

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    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.
    Original languageEnglish
    Place of PublicationTilburg
    PublisherMacroeconomics
    Number of pages27
    Volume2000-12
    Publication statusPublished - 2000

    Publication series

    NameCentER Discussion Paper
    Volume2000-12

    Fingerprint

    Disintegration
    Trade intensity
    Trade liberalization
    Normalization
    Multinationals
    Gravity model
    Economic consequences
    Soviet Union
    Liberalization
    Federation
    European countries
    Eastern Europe
    Czechoslovakia

    Keywords

    • Gravity Model
    • International Trade
    • European Integration
    • Disintegration

    Cite this

    Fidrmuc, J., & Fidrmuc, J. (2000). Integration, Disintegration and Trade in Europe: Evolution of Trade Relations during the 1990s. (CentER Discussion Paper; Vol. 2000-12). Tilburg: Macroeconomics.
    Fidrmuc, J. ; Fidrmuc, J. / Integration, Disintegration and Trade in Europe : Evolution of Trade Relations during the 1990s. Tilburg : Macroeconomics, 2000. (CentER Discussion Paper).
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    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.",
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    Fidrmuc, J & Fidrmuc, J 2000 'Integration, Disintegration and Trade in Europe: Evolution of Trade Relations during the 1990s' CentER Discussion Paper, vol. 2000-12, Macroeconomics, Tilburg.

    Integration, Disintegration and Trade in Europe : Evolution of Trade Relations during the 1990s. / Fidrmuc, J.; Fidrmuc, J.

    Tilburg : Macroeconomics, 2000. (CentER Discussion Paper; Vol. 2000-12).

    Research output: Working paperDiscussion paperOther research output

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    Fidrmuc J, Fidrmuc J. Integration, Disintegration and Trade in Europe: Evolution of Trade Relations during the 1990s. Tilburg: Macroeconomics. 2000. (CentER Discussion Paper).