Is Regionalism Simply a Diversion? Evidence from the Evolution of the EC and Efta
42 Pages Posted: 26 Jul 2000 Last revised: 25 Feb 2002
Date Written: October 1995
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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