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

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.

Linking with Uncertainty: The Relationship Between EU ETS Pollution Permits and Kyoto Offsets

“…7 The DOE contracted for the verification of the achieved emission reductions usually differs from the DOE contracted for validation, but the same DOE can be contracted upon request. requirements, which may cause a significant delay (Trotignon and Leguet, 2009). Furthermore, the number of CERs produced per year may be smaller or greater than the emissions reductions specified in the original PDD.…”

“…During much of Phase II, it was not clear whether the import limit for offsets would turn out to be binding due to uncertainty on both the supply and the demand side. Generating emission offsets either via the Clean Development Mechanism (CDM) or by Joint Implementation (JI) is a complicated and lengthy procedure (Trotignon and Leguet, 2009).…”

Governance, Infrastructure and Regional Integration: The Case of CEMAC

“…Sharing the common language has a positive and significant effect at 1%. Thus, Trotignon's (2009) view that sharing a common language is a proxy for cultural rapprochement that can reduce business transaction costs is confirmed. CEMAC countries also have trading partners for whom they share the same language.…”