Publication

This paper estimates the effect of the EU's eastern enlargement on the trade patterns of Central and Eastern European countries (CEEC) that joined the Union in May 2004. Specifically, it investigates whether and how the EU's free trade agreements with the CEECs have affected center-periphery and intra-periphery trade flows. The paper concludes that the CEECs should move toward a regional free trade area as exemplified by the Central European Free Trade Agreement and the Baltic Free Trade Agreement to avoid relegation to peripheral economic status or so-called hub-and-spoke effects.