IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/1995-109.html
   My bibliography  Save this paper

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

Author

Listed:
  • Mr. Tamim Bayoumi
  • Mr. Barry J. 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 EEC and EFTA altered the pattern of international trade. We also find evidence of trade diversion in several cases, notably that of the EEC in the 1960s.

Suggested Citation

  • Mr. Tamim Bayoumi & Mr. Barry J. Eichengreen, 1995. "Is Regionalism Simply a Diversion? Evidence from the Evolution of the EC and EFTA," IMF Working Papers 1995/109, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1995/109
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=1909
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. 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 881-892, December.
    3. 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.
    4. 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.
    5. 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 474-481, August.
    6. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Filip Abraham & Erik Buyst & Sven Geyssens, 1997. "Trade integration in the twentieth century: What does Belgian history tell us?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(4), pages 708-736, December.
    2. Andres Faiña & Jesus Lopez-Rodríguez, 2003. "Population Potentials and Development Levels: Empirical Findings in the European Union," ERSA conference papers ersa03p30, European Regional Science Association.
    3. Emla Fitzsimons & Vincent Hogan & J. Peter Neary, 1999. "Explaining the Volume of North-South Trade in Ireland - A Gravity Model Approach," The Economic and Social Review, Economic and Social Studies, vol. 30(4), pages 381-401.
    4. Zhang, Daowei & Li, Yanshu, 2009. "Forest endowment, logging restrictions, and China's wood products trade," China Economic Review, Elsevier, vol. 20(1), pages 46-53, March.
    5. Mohd Hussain Kunroo & Irfan Ahmad Sofi & Naushad Ali Azad, 2016. "Trade implications of the Euro in EMU countries: a panel gravity analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(2), pages 391-413, May.
    6. Ghosh, Sucharita & Yamarik, Steven, 2004. "Are regional trading arrangements trade creating?: An application of extreme bounds analysis," Journal of International Economics, Elsevier, vol. 63(2), pages 369-395, July.
    7. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    8. Guglielmo Caporale & Christophe Rault & Robert Sova & Anamaria Sova, 2009. "On the bilateral trade effects of free trade agreements between the EU-15 and the CEEC-4 countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 573-573, October.
    9. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
    10. Salvador Gil-Pareja & Rafael Llorca & Josè A. Martinez-Serrano, 2011. "Is There A Continental Bias In Trade?," ERSA conference papers ersa10p792, European Regional Science Association.
    11. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May.
    12. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    13. Koo, Won W. & Taylor, Richard D. & Karemera, David, 1992. "Determinants of Red Meat Trade Flows," Agricultural Economics Reports 23448, North Dakota State University, Department of Agribusiness and Applied Economics.
    14. Theo S. Eicher & Christian Henn, 2011. "One Money, One Market: A Revised Benchmark," Review of International Economics, Wiley Blackwell, vol. 19(3), pages 419-435, August.
    15. Jacqueline Karlsson & Helena Melin & Kevin Cullinane, 2018. "The impact of potential Brexit scenarios on German car exports to the UK: an application of the gravity model," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-22, December.
    16. Brad Christerson, 1994. "World Trade in Apparel: An Analysis of Trade Flows Using the Gravity Model," International Regional Science Review, , vol. 17(2), pages 151-166, August.
    17. Robert J. R. Elliott & Kengo Ikemoto, 2004. "AFTA and the Asian Crisis: Help or Hindrance to ASEAN Intra‐Regional Trade?," Asian Economic Journal, East Asian Economic Association, vol. 18(1), pages 1-23, March.
    18. Peter Egger, 2000. "Teilprojekt 4: Bilaterale Wirtschaftsbeziehungen zwischen der EU und ausgewählten mittel- und osteuropäischen Ländern (MOEL): Entwicklungen der letzten Jahre und Versuch einer Prognose," WIFO Studies, WIFO, number 19262, July.
    19. Fock, Achim & Ledebur, Oliver von, 1998. "Struktur Und Potentiale Des Agraraussenhandels Mittel- Und Osteuropas," IAMO Discussion Papers 14914, Institute of Agricultural Development in Transition Economies (IAMO).
    20. Sylvanus Kwaku Afesorgbor, 2013. "Revisiting the Effectiveness of African Economic Integration. A Meta-Analytic Review and Comparative Estimation Methods," Economics Working Papers 2013-13, Department of Economics and Business Economics, Aarhus University.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:1995/109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.