Free trade agreements with EU-15 lead to trade balance deficit in CEEC.
The article examines how Free Trade Agreements between the EU-15 and CEEC-4 countries impact trade balances. Using the gravity model, the researchers found that these agreements have a positive effect on trade flows. However, exports and imports are affected differently, leading to disparities in trade performance. This results in an uneven impact on trade balances, with the agreements causing a trade deficit in the CEEC countries.