کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
962824 930157 2007 24 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Do free trade agreements actually increase members' international trade?
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Do free trade agreements actually increase members' international trade?
چکیده انگلیسی
For over 40 years, the gravity equation has been a workhorse for cross-country empirical analyses of international trade flows and - in particular - the effects of free trade agreements (FTAs) on trade flows. However, the gravity equation is subject to the same econometric critique as earlier cross-industry studies of U.S. tariff and nontariff barriers and U.S. multilateral imports: trade policy is not an exogenous variable. We address econometrically the endogeneity of FTAs. Although instrumental-variable and control-function approaches do not adjust for endogeneity well, a panel approach does. Accounting econometrically for the FTA variable's endogeneity yields striking empirical results: the effect of FTAs on trade flows is quintupled. We find that, on average, an FTA approximately doubles two members' bilateral trade after 10 years.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of International Economics - Volume 71, Issue 1, 8 March 2007, Pages 72-95
نویسندگان
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