Is a Model of Comprehensive Regionalism Trade-Increasing for V4 Countries? Sectoral Approach

Abstract

This paper aims to identify the impact of a "deep" (economic union) and "shallow" (Common Commercial Policy) integration on 4 Visegrad countries' trade with the EU and non-EU industrialized countries. Trade flows are analysed on the basis of sectors over the period of 1995-2011: the gravity model also utilizes sectoral value-added and sectoral output as proxies for the market size. The impact of regional trade agreements (RTAs) is evaluated for 17 WIOD sectors based on the research methodology developed by Baldwin (2006), Flam and Nordstrom (2003) and Fernandes (2006). Contrary to the mentioned research studies, this paper uses a more advanced econometric technique-the Poisson pseudo-maximum-likelihood method displayed in Silva and Tenreyro (2006). This paper concludes that both "deep" and "shallow" trade arrangements have a more pronounced effect on Visegrad high value-added product exports than on Visegrad low value-added product exports. Common Commercial Policy's trade effects on RTAs, for instance in the case of Mexico and Turkey, are comparable to its trade effects with EU countries. The Common Commercial Policy's effect on RTAs is almost absent in low-value-added product sectors of Visegrad countries. Thus, we conclude that integration with the EU influenced Visegrad countries' trade of higher value-added goods with both the EU and non-EU industrialized countries.

Impacts of Foreign Trade on the Economy of Wood-Based Sectors Generating Different Levels of Value Added in the Slovak and Czech Republics

“…The most pronounced effect of imports is observed for EBIT when imports fall or if the increase in imports is smaller than the increase in exports and net exports rise. This corresponds with the findings in the V4 countries according to the study by Gauger and Sledziewska [14]. However, during the period under review, the furniture industry lost its comparative advantage due to a negative trade balance because of the growth in imports in Slovakia and the decline in exports in Czechia.…”

“…The studies by Reppas and Christopoulus [12] and Cetin [13] revealed indirection by assessing the causality between international trade and macroeconomic growth. The impact of European integration on Visegrad countries trade using more advanced econometric techniques, examined by Gauger and Sledziewska [14], showed the influence on trade of higher value-added goods.…”

“…The impact of foreign trade on economic performance can also be measured by specific indicators such as multipliers of export and export, the contribution of trade balance, and input-output analysis. This approach was used in studies by several authors [14][15][16][17][18][19][20].…”

Analysis of the management of the municipal undertakings of the Visegrad Group in the period 2017–2021

“…The Visegrad Group also engaged in foreign policy and regional cooperation. The group has played a role in Ukraine's development and has functioned as a communication platform to intensify dialogue between Ukraine and the EU (Gauger & Sledziewska, 2018). The Visegrad countries have shown interest in cooperation with the Mashriq region, including Jordan, Israel and Egypt (Döring, 2019).…”