Deep Trade Agreements and Global Value Chains

By E. Laget, Alberto Osnago, N. Rocha, Michele Ruta. Review of Industrial Organization, 2018

152 citations recorded by the source corpus.

A prominent argument as to why countries sign “deep” preferential trade agreements (PTAs) is to foster global value chains (GVCs) operations. By exploiting a new dataset on the content of PTAs, this paper quantifies the positive impact of deep PTAs on GVC participation, mostly driven by value-added trade in intermediate rather than in final goods and services. On average, each additional policy areas increases the domestic and the foreign value added of intermediates by 0.48 and 0.38%. Deep PTAs facilitate integration in industries with higher levels of value added. Their content also matters for GVC integration by income group.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/f492ecb82d828a48b9440ebc2967fb595c2684bd

Citations in the corpus

• Measuring Bilateral Exports of Value Added: A Unified Framework (2018, unknown): “More recently, Dhingra et al. (2018) and Laget et al. (2018) studied trade policies using VAX-D measures.”