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This paper considers the impact on trade of preferential arrangements in Europe since the 1950s. Using a first difference version of the gravity model, we find that the EEC and EFTA altered the pattern of international trade. We also find evidence of trade diversion in several cases, notably that of the EEC in the 1960s.

Econometrics --- Exports and Imports --- Foreign Exchange --- Trade Policy --- International Trade Organizations --- Empirical Studies of Trade --- Econometric Modeling: General --- International economics --- Currency --- Foreign exchange --- Econometrics & economic statistics --- Purchasing power parity --- Customs unions --- Gravity models --- Plurilateral trade --- Trade agreements --- International trade --- Econometric analysis --- Protectionism --- Econometric models --- Commercial treaties --- United Kingdom