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Trade Creation and Diversion Effects of Europe's Regional Liberalization Agreements

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  • Yener Kandogan
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    Abstract

    After a short review of recent developments in gravity modeling and an overview of the liberalization agreements in Europe, this paper measures the trade creation and diversion effects of major European agreements based on the results of a correctly specified triple-indexed gravity model with bilateral fixed effects. Discussion of the resulting trade creation and diversion focuses on the role of partner and non-partner country characteristics including size and relative factor endowments, as well as date, reciprocity, industry coverage, and rate of liberalization characteristics of the agreement.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal International Economic Journal.

    Volume (Year): 23 (2009)
    Issue (Month): 4 ()
    Pages: 591-615

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    Handle: RePEc:taf:intecj:v:23:y:2009:i:4:p:591-615

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    Related research

    Keywords: Gravity model; fixed effects;

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    Cited by:
    1. Bianka Dettmer, 2012. "The European Union's service directive: Contrasting ex ante estimates with empirical evidence," Jena Economic Research Papers 2012-019, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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