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

IMF Working Papers, November 1, 1995

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

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Bibliographic details

Authors: Tamim Bayoumi, Barry J. Eichengreen
Published: November 1, 1995
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9781451853155.001

Authors and publication

By Tamim Bayoumi, Barry J. Eichengreen
November 1, 1995
IMF Working Papers, Working Paper No. 1995/109
Volume: 1995; Issue: 109; Pages: 31
DOI: https://doi.org/10.5089/9781451853155.001
Stock No: WPIEA1091995
ISBN: 9781451853155
ISSN: 1018-5941

Research question and methodology

Research question:
- Examines the impact on trade of preferential arrangements in Europe since the 1950s.
Methodology:
- Uses a first difference version of the gravity model.

Key findings

General findings:
- The EEC and EFTA altered the pattern of international trade.
Evidence of trade diversion:
- Finds evidence of trade diversion in several cases.
- Notably documents trade diversion associated with the EEC in the 1960s.

Subjects and keywords

Subjects:
- Customs unions, Econometric analysis, Foreign exchange, Gravity models, International trade, Plurilateral trade, Purchasing power parity, Trade agreements
Keywords:
- Asia and Pacific, constant term, Customs unions, EEC membership, EEC trade, EFTA country, Europe, free trade, Global, Gravity models, Plurilateral trade, Purchasing power parity, third-country effect, Trade agreements, trade creation, WP

Notes and context

Revised version of paper presented at the Sixth Annual East Asian Seminar on Economics, Seoul, Korea, June 15-17, 1995.
Disclaimer:
- This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Source: IMF Working Papers, "Is Regionalism Simply a Diversion? Evidence from the Evolution of the EC and EFTA", Tamim Bayoumi and Barry J. Eichengreen, November 1, 1995.