In a modified version of the Gravity Model, appropriate dummy variables have been introduced to analyze the effects of both trade creation and trade diversion by the three economic organizations of the EEC (European Economic Community), the LAFTA (Latin American Free Trade Association) and the...

The purpose of this paper is to examine the feature and the transition of trade in the Asia-Pacific region during the post-World War II period. The paper employs the gravity model with some regional dummy variables to estimate trade flows among 80 economies through temporal cross-section data...

The case is studied where several small countries, wanting to set second-best tariffs to maximize objective functions, move from the situation where they can set their most appropriate tariffs to the situation where they form a customs union. By dividing the overall effect of forming customs...