This paper fits a gravity model to the trade of 76 market economies. It then applies the model to data on East European … mutual trade and trade with developing countries, but it will increase trade with industrial counties by factors of three to … thirty. West Germany and the USA are the principal beneficiaries of this new trade, increasing their exports and imports by …

The focus of trade policy has shifted in recent years from economy-wide reductions in tariffs and trade restrictions … towards targeted interventions to facilitate trade and promote exports. Most of these latter interventions are based on the … new mantra of "aid-for-trade" rather than on hard evidence on what works and what doesn’t. On the one hand, rigorous …

The gravity model of trade is utilized to assess the impact of disintegration on trade. The analysis is based on three … strong home bias around the time of disintegration, with intra-union trade exceeding normal trade approximately 43 times in … fall in trade intensity. Nevertheless, there is a considerable hysteresis in economic relations, with trade flows among the …

recently created or revamped PTAs on trade. We modify the usual gravity equation to identify separate effects of PTAs on intra …-bloc trade, members' total imports and their total exports. We also innovate by formally testing the significance of changes in … regionalism boosted intra-bloc trade significantly. Regarding trade diversion, we found convincing evidence of it only for EU and …

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. …

This paper emphasizes the relevance of classical transition dynamics for trade policy, particularly for developing … to trade policy reforms. The paper employs a simple growth model to examine these effects, formally developing the …