Download or read book Is Regionalism Simply a Diversion? Evidence from the Evolution of the EC and EFTA written by Mr.Tamim Bayoumi and published by International Monetary Fund. This book was released on 1995-11-01 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.