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Is Regionalism Simply a Diversion? Evidence From the Evolution of the EC and EFTA

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Author Info
Tamim Bayoumi
Barry Eichengreen

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Abstract

This paper considers the impact on trade of preferential arrangements in Europe since the 1950s. Using a first difference version of the gravity model, we find that the EC and EFTA altered the pattern of international trade. We also find evidence of trade diversion in several cases, notably that of the EC in the 1960s.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5283.

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Date of creation: Oct 1995
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Handle: RePEc:nbr:nberwo:5283

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Find related papers by JEL classification:
F0 - International Economics - - General
F1 - International Economics - - Trade

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  1. Jacquemin, Alexis & Sapir, Andre, 1988. "International trade and integration of the European Community : An econometric analysis," European Economic Review, Elsevier, vol. 32(7), pages 1439-1449, September. [Downloadable!] (restricted)
  2. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-81, August. [Downloadable!] (restricted)
  3. Aitken, Norman D, 1973. "The Effect of the EEC and EFTA on European Trade: A Temporal Cross-Section Analysis," American Economic Review, American Economic Association, vol. 63(5), pages 881-92, December. [Downloadable!] (restricted)
  4. Jeffrey A. Frankel & Ernesto Stein & Shang-Jin Wei, 1993. "Continental Trading Blocs: Are They Natural, or Super-Natural?," NBER Working Papers 4588, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March. [Downloadable!] (restricted)
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