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...

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...