Gianluca Cafiso
- 11 November 2009
- WORKING PAPER SERIES - No. 1116Details
- Abstract
- The purpose of this paper is to explain the relation between the Border Effect and industrial concentration. This is achieved by founding this relation on the Home Market Effect and testing the robustness of this foundation through an application to the European Single Market. A sectorial Gravity Equation is estimated using different econometric estimators, in particular we discuss a recently suggested technique for the estimation of log-linear CES models. Overall, our findings suggest a steady relation between the Border Effect and industrial concentration. Besides, the analysis of industrial concentration through a synthetic index provides us with valuable insights into the structure of the European industry.
- JEL Code
- F10 : International Economics→Trade→General
F12 : International Economics→Trade→Models of Trade with Imperfect Competition and Scale Economies, Fragmentation
F15 : International Economics→Trade→Economic Integration
- 19 September 2008
- WORKING PAPER SERIES - No. 941Details
- Abstract
- This paper assesses the Euro's influence upon European trade by estimating two different indicators. The first is the so-called "Rose Effect", while the second is the "Border Effect". The former measures how much a country within a currency union trades more with its partners than with non-member countries, the latter measures the integration of a country with its trade partners. This study of the Euro's influence by means of the Border Effect is a novelty in the literature, it reveals that the Euro's influence upon trade is not so clear as papers focused only on the Rose Effect claim. This casts doubts about the consequences of the Euro introduction for the European Single Market. Both indicators are estimated by means of a gravity model for bilateral trade flows using a panel of manufacture exports among twenty-four OECD countries.
- JEL Code
- F10 : International Economics→Trade→General
F14 : International Economics→Trade→Empirical Studies of Trade
F15 : International Economics→Trade→Economic Integration