Exploring the Drivers and Constraints in Intra-EU Trade

Elena Makrevska Disoska – Faculty of Economics – Skopje, Ss. Cyril and Methodius University in Skopje, Republic of North Macedonia

Irena Kikerkova – Faculty of Economics – Skopje, Ss. Cyril and Methodius University in Skopje, Republic of North Macedonia

Katerina Toshevska – Trpchevska – Faculty of Economics – Skopje, Ss. Cyril and Methodius University in Skopje, Republic of North Macedonia

Jasna Tonovska – Faculty of Economics – Skopje, Ss. Cyril and Methodius University in Skopje, Republic of North Macedonia

Abstract: The objective of this paper is to explore the factors that stimulate trade among EU countries and pinpoint areas that require improvement to foster a further increase in trade intensity within the region. The focus is on the effect of aggregate trade restrictions, which are based on the nov­el indicator Measure of Aggregate Trade Restrictions (MATR), developed by the IMF. The empirical analysis consists of the estimation of a gravity panel model for the 28 EU member countries (including Great Britain) for the peri­od from 1999-2020, by implementing both Ordinary least squares (OLS) and Poisson Pseudo Maximum Likelihood (PPML) estimators. The results show that the Eurozone membership has positive effects on increasing intra-EU trade, whereas the MATR indicator has significant negative effects, suggest­ing that the elimination of the remaining trade restrictions could lead to a further boost of intra-EU trade.

7th International Scientific Conference – EMAN 2023 – Economics and Management: How to Cope With Disrupted Times, Ljubljana, Slovenia, March 23, 2023, SELECTED PAPERS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-70-7, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.S.P.2023

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