Openness And The EU

1
Openness And The EU

• Does Candidacy to the EU Increase a Nations
  Trade Openness?
• By Constantine Petallides

2
What is Trade Openness?

• (Imports Exports)/GDP
• More Business Stronger and More Stable Economy

3
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/g
  lossary/accession_criteria_copenhague_en.htm

4
Methodology

• Penn World Tables used to generate dataset
• Observe other variables in relation to Trade
  Openness

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The Data
country country isocode year PPP rgdpl rgdpch openk Candidate Average Openness Candidate Member Average Openness Mamber
Austria AUT 1950 0.724949815 5659.486278 5573.344381 17.697967 0 64.81330537 0 88.33969446
Austria AUT 1951 0.834292145 6067.280273 5977.480952 17.91962644 0 64.81330537 0 88.33969446
Austria AUT 1952 0.918096512 5961.272557 5866.769488 16.53725846 0 64.81330537 0 88.33969446
Austria AUT 1953 0.912380911 6074.063447 5973.644522 19.12223171 0 64.81330537 0 88.33969446
Austria AUT 1954 0.934389822 6653.068966 6560.464687 22.27840316 0 64.81330537 0 88.33969446
Austria AUT 1955 0.950667657 7458.980326 7416.179229 23.22375741 0 64.81330537 0 88.33969446
Austria AUT 1956 0.970029488 7668.40042 7630.099974 25.73202675 0 64.81330537 0 88.33969446
Austria AUT 1957 0.969994975 8157.420042 8112.102812 27.23415819 0 64.81330537 0 88.33969446
Austria AUT 1958 0.936666641 8460.831883 8414.141548 26.02705121 0 64.81330537 0 88.33969446
Austria AUT 1959 0.940956097 8707.753274 8668.317297 28.26950554 0 64.81330537 0 88.33969446
Austria AUT 1960 0.93101264 9811.916896 9797.571406 28.44636202 0 64.81330537 0 88.33969446
Note All tables and graphs are author created
based on this dataset
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The Data (Post-Mental Breakdown)
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Case Example Finland
Year EU Status GDP Trade Openess
91 Unaffiliated 20755.78568 41.14312089
92 Candidate 19551.72211 45.59469788
93 Candidate 18892.2547 51.08341727
94 Candidate 19598.61584 55.54894615
95 Member 20739.58135 56.5274974
96 Member 21088.96206 58.86920368
97 Member 22699.64664 61.40788752
98 Member 24185.8625 62.42602938
99 Member 25091.55467 64.73418808
00 Member 26401.79381 71.72706411
01 Member 27024.66205 70.98454394
02 Member 27299.83326 72.00204736
03 Member 27750.5908 71.02776323
04 Member 28766.45285 73.98360549
05 Member 29761.46199 78.06943861
06 Member 31045.56394 81.78941102
07 Member 32486.15469 81.53146954
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Unobservable Factors Turkey
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
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Further Research / Difficulties

• Statistics Training
• More Advanced Confirmation of Relationship