EU enlargements, Brexit and value-added trade: A structural gravity approach.

ABSTRACT: We revisit the topic of trade effects of past EU enlargements. We employ a structural gravity model to flows of domestic value added embedded in international trade and absorbed in the foreign final demand for the period of 1995-2018. Our model takes into account the current state of the art in estimation of gravity models: PPML estimation and multi-dimensional fixed effects. We base our estimations on the TiVA dataset and provide aggregate and sectoral estimates. Our results show stable estimates of EU enlargement on value-added trade of the order of 13.9% depending on the specification. These results are also robust to a choice of an alternative dataset (WIOD database). The advantage of our approach is the direct calculation of the trade impact on the GDP level. Based on these estimates

SUBMITTER: Hagemejer J 

PROVIDER: S-EPMC12002806 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature