The paper shows how - using as an example the trade flows between eleven European countries and 31 OECD 'reporting' countries - the result of a gravity model, in terms of potential trade, changes substantially when country heterogeneity and dynamics are taken into account. Comparing the...

Introduction -- EU Preferential Trading Arrangements: Evolution, Content and Use -- EU Preferential Margins: Measurement and Aggregation Issues -- The Gravity Model in International Trade -- Trade Impact of EU Preferential Policies: a Meta-analysis of the Literature -- Trade Impact of EU...

Over the time a large number of reciprocal preferential trade agreements (RTAs) have been concluded among countries. Recently many studies have used gravity equations in order to estimate the effect of RTAs on trade flows between partners. These studies report very different estimates, since...