Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7364151 | Journal of International Economics | 2016 | 20 Pages |
Abstract
This paper infers the terms of trade effects of free trade agreements (FTAs) implemented in the 1990s. We estimate large FTA effects on bilateral trade volume in 2 digit manufacturing goods from 1990-2002, using panel data gravity methods to resolve two way causality. The terms of trade changes implied by these volume effects are deduced for 40 countries plus a rest-of-the-world aggregate using an endowments general equilibrium model. Some countries gain over 5% of real manufacturing income, some lose less than 0.3%. Global efficiency of manufactures trade rises 0.9% based on a distance function measure of iceberg melting.
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Authors
James E. Anderson, Yoto V. Yotov,