DP1576 Domino Effects in Western European Trade, 1960-92

Author(s):	André Sapir
Publication Date:	February 1997
Keyword(s):	Gravity Model, Preferential Trading Arrangement
JEL(s):	F13, F15
Programme Areas:	International Trade and Regional Economics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=1576

This paper uses a standard gravity equation to test the hypothesis of domino effects in Western Europe. The question being addressed is whether increased integration within the EC has impacted negatively on non-members and thereby prompted their application for EC membership. The paper finds that the EC?s Internal Market programme may have caused such an effect on EFTA member countries.