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Are the New Trading Blocs Building or Stumbling Blocks ? A Gravity Model Using Panel Data

Author

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  • Jérôme Trotignon

    (Université de Lyon, Lyon, F-69003, France; CNRS, GATE, UMR 5824, Ecully, F-69130, France)

Abstract

We will be asking ourselves if the trading blocs created or renewed since the end of the 1980s favor the multilateralization of trade, and so constitute building or stumbling blocks. In a gravity model using panel data, we estimate a set of three regional dummies representative of intra-bloc trade, extra-bloc exports and extra-bloc imports. Taking the resulting three coefficients as a starting point, we propose an original typology of trade creations / diversions and of trading blocs. In applying it to our results, all the groups chosen as well as the Economic and Monetary Union, are shown to be building blocks. No trade diversion is noted, with the exception of an export diversion brought about by North American Free Trade Agreement.

Suggested Citation

  • Jérôme Trotignon, 2009. "Are the New Trading Blocs Building or Stumbling Blocks ? A Gravity Model Using Panel Data," Working Papers 0933, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    • Handle: RePEc:gat:wpaper:0933
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    File URL: ftp://ftp.gate.cnrs.fr/RePEc/2009/0933.pdf
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    Cited by:

    1. Mireille S. Ntsama Etoundi, 2015. "Impact de la rente pétrolière sur la demande des pays frontaliers du Cameroun," CERDI Working papers halshs-01027500, HAL.
    2. repec:aly:journl:202055 is not listed on IDEAS
    3. Mireille NTSAMA ETOUNDI, 2014. "Impact de la rente pétrolière sur la demande des pays frontaliers du Cameroun," Working Papers 201417, CERDI.

    More about this item

    Keywords

    trade integration; gravity model; trade creation / diversion; building / stumbling blocks;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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