Anatomy of the trade-effect of regional trade agreements and agenda for future research

Masood, Amjad (2021): Anatomy of the trade-effect of regional trade agreements and agenda for future research.

Abstract

It is a common practice to take interval data with non-consecutive years to treat RTAs in gravity estimation. However, the current study shows that the interval approach yields biased estimates. Based on the findings, the study suggests emphasizing the question of "How do agreements affect trade?" in addition to the rather simple question of "Do agreements affect trade?" using consecutive data. It would be interesting to see how the trade-effect curve of a specific RTA, or a group of RTAs deviates from the curve for the cumulative effect of all RTAs in force worldwide.

• Item Type: MPRA Paper
• Language: English
• Keywords: RTAs; Structural Gravity; Bilateral Trade; Interval Data
• Subjects: F - International Economics > F1 - Trade > F10 - General; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

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