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The Role of the New Goods Margin for New EU Countries Trade
Author(s) -
Rosal Ignacio
Publication year - 2019
Publication title -
jcms: journal of common market studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.54
H-Index - 90
eISSN - 1468-5965
pISSN - 0021-9886
DOI - 10.1111/jcms.12896
Subject(s) - margin (machine learning) , international trade , international economics , liberalization , economics , sample (material) , bilateral trade , member states , business , european union , market economy , china , political science , chemistry , chromatography , machine learning , computer science , law
Abstract Recent literature on international trade has devoted increased attention to the role played by the extensive margin of trade for economies engaged in liberalization and structural transformation processes, such as the new EU countries. This article documents the leading role of the new goods margin in trade growth for the new member states that have acceded the EU in 2004 and 2007. Product trade data is used to analyse the trade share of the new goods over the sample period 1999–2014. The results show that the extensive margin of trade grew from 10 to around 50 per cent for most bilateral trade flows of the new EU member states. Further decomposition of the new goods margin shows that the goods already traded though in small volumes at the beginning of the period play a leading role.