EU and NAFTA which are huge regional economic blocs came out the world economy at the end of the twentieth century. It is the first that Europe has been trying to establish regional economic integration which is a revolutionary change to world economy...
EU and NAFTA which are huge regional economic blocs came out the world economy at the end of the twentieth century. It is the first that Europe has been trying to establish regional economic integration which is a revolutionary change to world economy. So that regional economic integration of Europe(European Union) has been improving to make a complete economic?political integration. This paper analyzes trade creation effect for joining European Union(EU) of Central?Eastern European countries with random effect estimation and fixed effect estimation. 12 Central?Eastern European countries have become membership states of EU since 2004 is able to get 27.4% of trade increase effect on average between old and new membership countries one another as well as between new membership countries one another respectively. It is very important for some countries have a plan to affiliate to EU in the future to realize such a big effect if they are in.