Deeper integration: What effects on trade?
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Título
Deeper integration: What effects on trade?Fecha de publicación
2011-03Editor
Hochschule St. Gallen für Wirstchafts- und SocialwissenschaftenISSN
0004-8216Otros Identificadores
http://search.proquest.com/docview/896268677/fulltextPDF/13A40351AA81796C06C/3?accountid=15297Cita bibliográfica
Aussenwirtschaft, 66. 1 (Mar 2011): 7-32,140Tipo de documento
info:eu-repo/semantics/articleVersión de la editorial
http://search.proquest.com/docview/896268677?accountid=15297Palabras clave / Materias
Materia JEL
Resumen
The focus of this paper is to estimate the effect of the different types of regional trade agreements on the volume of trade between country pairs. The analysis will employ the "empirical workhorse" of international ... [+]
The focus of this paper is to estimate the effect of the different types of regional trade agreements on the volume of trade between country pairs. The analysis will employ the "empirical workhorse" of international trade; the gravity model. We hypothesize that the deeper agreements have a stronger effect on trade, especially when considering the extensive margin on trade. When controlling for the extensive margin of trade, the multilateral trade resistance terms, and the endogeneity bias we are able to obtain satisfyingly accurate treatment effects of the different types of regional trade agreements. Using a panel of 50 countries over the period 1980-1999, we find that customs unions, "deep" free trade agreements, and common markets have stronger effects on bilateral trade than simple free trade agreements. [-]
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