Citation

Discussion Paper Details

Please find the details for DP12844 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The Cost of Non-Europe, Revisited

Author(s): Thierry Mayer, Vincent Vicard and Soledad Zignago

Publication Date: April 2018

Keyword(s): European Union, Gravity and trade integration

Programme Area(s): International Trade and Regional Economics

Abstract: In this paper we quantify the ``Cost of Non-Europe'', i.e. the trade-related welfare gains each country member has reaped from the European Union. Thirty years after the terminology of Non-Europe was used to give estimates of the gains from further integration, we use modern versions of the gravity model to estimate the trade creation implied by the EU, and apply those to counterfactual exercises where for instance the EU returns to a ``normal'', shallow-type regional agreement, or reverts to WTO rules. Those scenarios are envisioned with or without the exit of the United Kingdom from the EU (Brexit) happening, which points to interesting cross-country differences and potential cascade effects in doing and undoing of trade agreements.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12844

Bibliographic Reference

Mayer, T, Vicard, V and Zignago, S. 2018. 'The Cost of Non-Europe, Revisited'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12844