Journal article
The European single market and intra-EU trade: an assessment with heterogeneity-robust difference-in-differences methods
Economica (London), v 93(369), pp 298-331
Jan 2026
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
We use heterogeneity-robust difference-in-differences (DiD) methods to evaluate the impact of membership in the European Union (EU) single market on international trade. On the policy front, we provide evidence that: (i) on average, the EU has been very effective in promoting trade among its member states; (ii) the trade effects of the EU have been long-lasting, but heterogeneous across EU cohorts; and (iii) while the EU has benefited both 'old' and 'new' members, the increase in the exports from the 'old' members to the 'new' joiners has been disproportionately larger. From a methods and practical perspective, the contribution of this paper is to introduce a new, fast and flexible estimation command that combines leading estimation techniques from the gravity literature with recent methods from the heterogeneity-robust DiD literature.
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Details
- Title
- The European single market and intra-EU trade: an assessment with heterogeneity-robust difference-in-differences methods
- Creators
- Arne J. Nagengast - Deutsche BundesbankFernando Rios-Avila - Universidad Privada BolivianaYoto V. Yotov - Drexel University, Economics (School of Economics)
- Publication Details
- Economica (London), v 93(369), pp 298-331
- Publisher
- Wiley
- Number of pages
- 34
- Grant note
- European Commission; European Union (EU); European Commission Joint Research Centre
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:001609354000001
- Scopus ID
- 2-s2.0-105021329638
- Other Identifier
- 991022133042604721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics