کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5056499 | 1371638 | 2011 | 14 صفحه PDF | دانلود رایگان |
In this paper we consider the trade creating effects of Preferential Trade Agreements (PTAs) for a large sample of countries within the period 1962-2000. The paper builds upon existing literature by examining whether any significant effects of PTAs occur through a change in the variety of exports (the extensive margin) or through a change in the volume of existing products (the intensive margin). To address this issue we employ the commonly used gravity equation as well as a matching approach to deal with potential self-selection problems. Our results indicate that exports respond positively to the formation of a PTA between countries, and that much of this increase in exports occurs along the extensive margin. We also show that the extensive margin responds more strongly to the formation of a PTA in larger exporters and for larger country pairs.
Research highlightsⶠThis paper considers the impact of PTAs on both the volume and variety of bilateral trade. ⶠPTAs are found to be trade-creating, increasing contemporaneous exports by around 12 percent. ⶠThe trade-creating effects of PTAs are larger for smaller countries and country-pairs. ⶠPTAs impact upon trade largely by increasing the variety of products traded. ⶠPTAs have a greater impact on variety traded in larger country pairs.
Journal: Economic Systems - Volume 35, Issue 1, March 2011, Pages 84-97