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|Title:||The impact of association agreements on trade flows and the trade balance: Evidence from the CEEC-4|
|Keywords:||Regionalisation; Trade flows; Trade balance; Panel data methods|
|Citation:||Economics and Finance Discussion Paper, Brunel University, 09-17.|
|Abstract:||In this paper we focus on the trade balance effects of free trade agreements between the EU-15 and the CEEC-4 countries using a dynamic panel data approach. Our theoretical framework is the gravity model, and the econometric method used to analyse the effect of the agreement variable is the system generalized method of moments (GMM). Our estimation results indicate a positive and significant impact of FTAs on trade flows. However, exports and imports are affected in different ways, leading to some disparity in trade flow performance between countries. Therefore, there is an asymmetric impact on the trade balance, the agreement variable resulting in a trade balance deficit in the CEEC-4.|
|Appears in Collections:||Economics and Finance|
Dept of Economics and Finance Research Papers
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