In this paper we use a gravity model in order to estimate the magnitude of potential trade flows between Greece and nine Balkan countries. We adopt a two stage approach. At the first stage the coefficients of the gravity model for the implemented trade between Greece and thirty trade partners...

This paper demonstrates that the appropriate econometric technique of testing for the effect of regional integration on bilateral trade is to augment the standard gravity model with country specific dummies instead of regional integration dummies. Using data on bilateral trade between Tanzania...