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Journal of Economic Integration 2005 September;20(3) :543-566.
European Enlargement and Single Market Accession: A Mistreated Issue

G. Philippidis A. Carrington 

Centro de Investigacion y Technologia Agroalimentaria(CITA)
Natonal Statistics
Copyright ©2005 Journal of Economic Integration
From 2004, enlargement of the European Union is expected to bring substantial net economic benefits. Herein lies a weakness, in that practically all empirical studies characterise ‘single market’ accession using simple ad hoc uniform percentage reductions in trade costs. Employing a modified gravity specification we estimate these costs and derive non-tariff barrier (NTB) equivalents, whilst associated regional impacts are calculated within a computable general equilibrium (CGE) framework. Our results suggest that spatial effects in gravity estimations have a dampening impact on NTBs for eleven of our sixteen sectors, which is reflected at the regional level.

JEL Classification
F1: Trade
F11: Neoclassical Models of Trade
F13: Trade Policy; International Trade Organizations
F15: Economic Integration
Keywords: European integration | Single market | NTBs | Gravity modelling | Spatial effects | CGE modelling
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