Do small countries of a trade bloc gain more of its enlargement? An empirical test of the Casella effect for the case of the European Community.

Harald Badinger, Fritz Breuss

Publication: Working/Discussion PaperWU Working Paper

Abstract

Casella (1996) derives theoretically the result that the gains from enlarging a trade bloc fall disproportionately on its small member states. Testing this hypothesis for the Member States of the European Community and its enlargements since 1973, we find mixed results, indicating that such a small country bonus may well exists, but that it is partly neutralized or dominated by economic forces that tend to favour large countries.
Original languageEnglish
Place of PublicationVienna
PublisherForschungsinstitut für Europafragen, WU Vienna University of Economics and Business
Publication statusPublished - 2002

Publication series

NameEI Working Papers / Europainstitut
No.46

WU Working Paper Series

  • EI Working Papers / Europainstitut

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