Trade creation and trade diversion in deep agreements

By Aaditya Mattoo, Alen Mulabdic, Michele Ruta. Canadian Journal of Economics/Revue canadienne d'économique, 2017

183 citations recorded by the source corpus.

Preferential trade agreements have boomed in recent years and extended their reach well beyond tariff reduction, to cover policy areas such as investment, competition, and intellectual property rights. This paper uses new information on the content of preferential trade agreements to examine the trade effects of deep agreements and revisit the classic Vinerian question of trade creation and trade diversion. The results indicate that deep agreements lead to more trade creation and less trade diversion than shallow agreements. Furthermore, some provisions of deep agreements have a public good aspect and increase trade also with non-members.

Subfields: Economics and Econometrics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/9ac2bb494ed1361377a2634387c6cdb55c119549

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Citations in the corpus

• Do environmental provisions in trade agreements make exports from developing countries greener? (2020, background): “Existing studies indicate that such deep PTAs tend to generate more trade than shallower agreements (Baier et al., 2014; Dür et al., 2014; Mattoo et al., 2017).”