openness and t he eu
DESCRIPTION
Openness And T he EU. Does Candidacy to the EU Increase a Nation’s Trade Openness? By: Constantine Petallides. What is Trade Openness?. (Imports + Exports)/GDP More Business = Stronger and More Stable Economy. Why Does the EU Care?. - PowerPoint PPT PresentationTRANSCRIPT
Openness And The EU
Does Candidacy to the EU Increase a Nation’s Trade Openness?By: Constantine Petallides
What is Trade Openness?
• (Imports + Exports)/GDP
• More Business = Stronger and More Stable Economy
Why Does the EU Care?
• Copenhagen Criteria: Existence of a functioning market economy and the capacity to cope with competitive pressure and market forces within the Union.1
• $$$$$$$$ $$$$$$$$ $$$$$$$$– Fewer tariff walls and “Four Freedoms”
• Everyone Wins!
1Europa – Glossary – Accession Criteria (Copenhagen Criteria), http://europa.eu/scadplus/glossary/accession_criteria_copenhague_en.htm
Methodology
• Penn World Tables used to generate dataset
• Observe other variables in relation to Trade Openness
The Data
countrycountry isocode year PPP rgdpl rgdpch openk Candidate
Average Openness Candidate Member
Average Openness Mamber
Austria AUT 19500.7249498
155659.486
2785573.3443
81 17.697967 064.813305
37 088.339694
46
Austria AUT 19510.8342921
456067.280
2735977.4809
5217.919626
44 064.813305
37 088.339694
46
Austria AUT 19520.9180965
125961.272
5575866.7694
8816.537258
46 064.813305
37 088.339694
46
Austria AUT 19530.9123809
116074.063
4475973.6445
2219.122231
71 064.813305
37 088.339694
46
Austria AUT 19540.9343898
226653.068
9666560.4646
8722.278403
16 064.813305
37 088.339694
46
Austria AUT 19550.9506676
577458.980
3267416.1792
2923.223757
41 064.813305
37 088.339694
46
Austria AUT 19560.9700294
887668.400
427630.0999
7425.732026
75 064.813305
37 088.339694
46
Austria AUT 19570.9699949
758157.420
0428112.1028
1227.234158
19 064.813305
37 088.339694
46
Austria AUT 19580.9366666
418460.831
8838414.1415
4826.027051
21 064.813305
37 088.339694
46
Austria AUT 19590.9409560
978707.753
2748668.3172
9728.269505
54 064.813305
37 088.339694
46
Austria AUT 19600.9310126
49811.916
8969797.5714
0628.446362
02 064.813305
37 088.339694
46
Note: All tables and graphs are author created based on this dataset
The Data (Post-Mental Breakdown)
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 070
5000
10000
15000
20000
25000
Average GDP
AVG GDP
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 070
20
40
60
80
100
120
Average Trade Openness
AVG TO
Year EU Status GDP Trade Openess91 Unaffiliated 20755.78568 41.1431208992 Candidate 19551.72211 45.59469788
93 Candidate 18892.2547 51.0834172794 Candidate 19598.61584 55.5489461595 Member 20739.58135 56.527497496 Member 21088.96206 58.8692036897 Member 22699.64664 61.40788752
98 Member 24185.8625 62.4260293899 Member 25091.55467 64.7341880800 Member 26401.79381 71.7270641101 Member 27024.66205 70.9845439402 Member 27299.83326 72.0020473603 Member 27750.5908 71.02776323
04 Member 28766.45285 73.9836054905 Member 29761.46199 78.0694386106 Member 31045.56394 81.7894110207 Member 32486.15469 81.53146954
Case Example: FinlandUn
affilia
ted
Cand
idat
eCa
ndid
ate
Cand
idat
eM
embe
rM
embe
rM
embe
rM
embe
rM
embe
rM
embe
rM
embe
rM
embe
rM
embe
rM
embe
rM
embe
rM
embe
rM
embe
r
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
0
5000
10000
15000
20000
25000
30000
35000
Finland's GDP
GDP
Unaffi
liate
dCa
ndid
ate
Cand
idat
eCa
ndid
ate
Mem
ber
Mem
ber
Mem
ber
Mem
ber
Mem
ber
Mem
ber
Mem
ber
Mem
ber
Mem
ber
Mem
ber
Mem
ber
Mem
ber
Mem
ber
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
0
10
20
30
40
50
60
70
80
90
Finland's Trade Openness
Trade Openess
Year EU Status GDP Trade Openess
98 Unaffiliated 6418.31986 41.37731082
99 Candidate 6093.582525 40.70670457
00 Candidate 6428.208431 46.48146355
01 Candidate 5708.507389 46.06522048
02 Candidate 6017.591012 48.62820636
03 Candidate 6253.601557 55.90605291
04 Candidate 6737.092957 60.6695371
05 Candidate 7132.831249 62.20189919
06 Candidate 7457.442694 63.17499061
07 Candidate 7737.858087 65.32816591
Unobservable Factors: TurkeyUn
affilia
ted
Cand
idat
e
Cand
idat
e
Cand
idat
e
Cand
idat
e
Cand
idat
e
Cand
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e
Cand
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e
Cand
idat
e
Cand
idat
e
98 99 00 01 02 03 04 05 06 07
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Turkey's GDP
GDP
Unaffi
liate
d
Cand
idat
e
Cand
idat
e
Cand
idat
e
Cand
idat
e
Cand
idat
e
Cand
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e
Cand
idat
e
Cand
idat
e
Cand
idat
e
98 99 00 01 02 03 04 05 06 07
0
10
20
30
40
50
60
70
Turkey's Trade Openness
Trade Openess
Further Research / Difficulties
• Statistics Training
• More Advanced Confirmation of Relationship