Studies and Analyses

Bogdanovska Gj., Andrijana

Recommended Reference: Bogdanovska Gj., Andrijana, The Relationship between Trade and Industry Structure – EU New and Old Countries (July 11, 2011). Available at SSRN: http://ssrn.com/paper=1942309

ABSTRACT

The study is a bi-directional study on the correlation of the trade and industry structure; two factors with a strong impact on the economic growth of countries. The analysis consists of extensive and detailed research on literature used in the development of the model which is tested empirically with data from the EU new and old member countries. It is a quantitative, inferential study with a general use of descriptive statistics.

The results indicate that from the new EU states, Bulgaria is an absolute winner, with a move of the economy into the higher value-added sectors. Slovakia is a relative looser, while from the old EU member states, Spain has benefited the most from the EU enlargement.

The findings emphasize an existence of a connection between the two variables when the gravity model is used. It supports the findings of the previous empirical research in the area.