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plattelandsvlucht --- films --- Ecuador.

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This paper reviews the empirical literature on the gravity model of trade to analyse and determine if the existing agreements between the European Union and Australia have led to trade creation or diversion. Considering the relevant literature behind the equation and trade agreements, a fixed-effects panel data regression is performed on the “Partnership Framework Agreement, “Wine Agreement” and “Mutual Recognition Agreement” over the 1994-2012, and 2003-2019 periods. 35 countries are included in the estimation, with seven explanatory variables. The study found that GDP per capita of the country of origin, GDP per capita of the country of destination, common language and common coloniser generally had a positive impact on bilateral trade flows for all agreements. The results show that only the Mutual Recognition Agreement had a positive effect on trade, and the “Partnership Framework Agreement” and “Wine Agreement” failed to cause trade creation.