Do Trade Agreements Stimulate International Trade Differently? Evidence from 296 Trade Agreements
By Tristan Kohl, S. Brakman, H. Garretsen. Social Science Research Network, 2013
210 citations recorded by the source corpus.
In a seminal paper, Rose (2004) found that the assumed positive impact of the WTO on international trade was questionable. This finding has been scrutinized and modified in subsequent research, using different datasets, econometric methods and separating the WTO from other forms of trade agreements. A key characteristic of this literature is the rather simplistic way in which trade agreements are treated whereby all trade agreements are lumped together. Trade agreements come, however, in many different forms and shapes. This paper addresses these differences in trade agreements. Using a unique database of 296 trade agreements, we distinguish 17 trade-related policy domains, 9 indicators of institutional quality and indicate whether the agreements contain legally enforceable commitments. This extensive and novel taxonomy of trade agreements enables us to allow for the possible heterogeneity of the impact of trade agreements on international trade. Using a gravity model, we find that trade agreement heterogeneity indeed matters for international trade, both positively and negatively.
Subfields: Economics and Econometrics, Political Science and International Relations, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/81c8c7a1ac162743d1d0125c503ff01c108a5a95
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Citations in the corpus
- On the widely differing effects of free trade agreements: Lessons from twenty years of trade integration (2019, unknown): “To this end, columns 5 to 8 of Table 3 repeat the same specifications as before, only now adding the pre-FTA tariff level (“ln 1+Applied Tariff”, which uses weighted-average applied tariffs taken from TRAINS), a 0/1 dummy variable for if the agreement entails the formation of a customs union and/or ”
- The domestic battle over the design of non-trade issues in preferential trade agreements (2016, methodology): “Second, I compared my coding with datasets that cover similar variables (Du€r et al., 2016; Kohl et al., 2016; Raess and Sari, 2016; Spilker and B€ohmelt, 2012).”