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Already in 1994, Baldwin predicted the formation of the 'hub-and-spokes' model to describe the outcomes of economic integration across the European Union (EU) implying marginalization of the new EU member states. We examine the validity of this hypothesis by putting an emphasis on Visegrad group...
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We show that traditional gravity variables play a significant role in explaining trade flows related to global value chain participation. We find evidence that cooperation costs - measured by linguistic and geographical proximity - are more relevant for trade that reflects cross-border...
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