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

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  • Tamim Bayoumi
  • Barry Eichengreen

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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File URL: http://www.nber.org/papers/w5283.pdf
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Bibliographic Info

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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Publication status: published as Regionalism Versus Multilateral Trade Arrangements, Ito, Takatoshi and Anne Kruger, eds., Chicago: University of Chicago Press, 1998.
Handle: RePEc:nbr:nberwo:5283

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  1. 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.
  2. André Sapir & Alexis Jacquemin, 1988. "International trade and integration of the European Community: an econometric analysis," ULB Institutional Repository 2013/8240, ULB -- Universite Libre de Bruxelles.
  3. Paul De Grauwe, 1988. "Exchange Rate Variability and the Slowdown in Growth of International Trade," IMF Staff Papers, Palgrave Macmillan, vol. 35(1), pages 63-84, March.
  4. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
  5. Jeffrey A. Frankel & Ernesto Stein & Shang-Jin Wei, 1998. "Continental Trading Blocs: Are They Natural or Supernatural?," NBER Chapters, in: The Regionalization of the World Economy, pages 91-120 National Bureau of Economic Research, Inc.
  6. 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.
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