Trade performances and technology in the enlarged European Union

Abstract

We analyse the role of the enlargement process of the European Union as a factor fostering international competitiveness of EU Member States. We argue that the economic integration process has partially reduced the technologicalgapbetweenoldandnewEUMemberStates,andthispatternoftechnologicalinnovationcanpartially explainthestrongimpulseontheexportdynamicsofEuropeancountries.Wehavebuiltanaugmentedgravitymodel by including the role of technological innovation, proxied by the stock of knowledge at the sector level. By using a dynamicpaneldataestimatorwefindthreemainempiricalevidences.First,theenlargementprocesshasproducedan overalllargerpositiveimpactonexportflowsfornewmembersthanforoldones,andmoreimportantlythatsectors with the higher technological content have received the strongest impulse. Second, the augmented gravity model allows shaping the crucial role of technological innovation in fostering export competitiveness. Third, this impact seemstobestrongerforoldEUmemberstatesthanfornewones.Thepolicyimplicationwederiveisthatthemore the new EU members catch up technologically as a result of the integration process, the more they will benefit in termsofeconomicdevelopment.

The Role of the New Goods Margin for New EU Countries Trade

“…The figures are even higher for the 10 countries that acceded the EU in 2004 (148.2 and 116.6 per cent, respectively). Although the trade liberalization process always precedes EU accession, 1 previous studies link the increase in the intra-EU trade of the new member states with the enlargement process (Antimiani and Costantini, 2013;Hornok, 2010;Martinez-Zarzoso et al, 2015).…”

Is the Convergence Party Over? Labour Productivity and the Technology Gap in Europe

“…Several studies have investigated convergence and catch-up in productivity at both the national and regional levels (Antimiani and Costantini, 2012;Cappelen et al, 2003;Tumpel-Gugerell and Mooslechner, 2003). Several studies have investigated convergence and catch-up in productivity at both the national and regional levels (Antimiani and Costantini, 2012;Cappelen et al, 2003;Tumpel-Gugerell and Mooslechner, 2003).…”

Which commercial partners are important for the most recently admitted EU countries?

“…For the …rst time, we study the e¤ects of the EU accession on both the EU10's export and import ‡ows. Changes in export ‡ows usually rely on competitiveness factors (Antimiani and Costantini, 2013), while changes in import ‡ows are associated with trade creation and trade diversion mechanisms created by the existence of a regional trade agreement (Carrère, 2004). We compute, in each exercise, the e¤ects based on all the sectors jointly and again with each sector individually.…”

“…Despite the abundance of studies on the e¤ects of the trade liberalization process during the 1990s, those that focus on the potential e¤ects on the intensity and direction of the EU10's trade ‡ows after 2004 are limited (Hornok, 2010 andAntimiani andCostantini, 2013 are two of them). In light of the previous discussion, the main contribution of this paper is to provide empirical evidence of the potential e¤ects of the …fth EU enlargement on the EU10's trade ‡ows.…”