Do preferential trade agreements contribute to the development of trade? Taking into account the institutional heterogeneity

Saucier, Philippe; Rana, Arslan Tariq

doi:10.1016/j.inteco.2016.10.001

Cited by 17 publications

(7 citation statements)

References 25 publications

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“…Eicher and Henn (2011) and Martinez-Zarzoso (2009) find that the impact of trade integration can depend on the trade partners' level of development. At the same time, a vast amount of literature has concluded that the details of an FTA matter, and deeper deals promote trade more than narrow ones (Baier et al 2014, Kohl 2014, Wang 2016, Saucier and Arslan 2017. The heterogeneity of FTAs is also evident when comparing trade effects between sectors.…”

Section: Literature Overviewmentioning

confidence: 99%

Trade Effects of the EU–South Korea Free Trade Agreement in the Automotive Industry

Juust

Vahter

Varblane

2020

Journal of East-West Business

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The EU-South Korea FTA, enforced in 2011, represents a significant case of a trade deal signed between two major developed economies that also belong among the largest car exporters in the world. This paper examines the effects of the EU-South Korea FTA on bilateral automotive industry trade, comparing them to the changes in total bilateral trade. The empirical analysis applies the gravity model framework with its contemporary methodological advancements and estimation techniques. The empirical results show that the trade-enhancing effects of the FTA in the auto trade are substantially higher than in total trade. Additionally, EU bilateral auto exports have increased more than South Korea's exports. The dynamics of the post-FTA trade flows suggest that the removal of the automotive industry's non-tariff barriers have played an important role in trade facilitation, especially for EU exports. The enforcement of the FTA has also been followed by notable changes in the structure of EU auto exports with the share of higher value final goods increasing and input goods decreasing.

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Section: Literature Overviewmentioning

confidence: 99%

Trade Effects of the EU–South Korea Free Trade Agreement in the Automotive Industry

Juust

Vahter

Varblane

2020

Journal of East-West Business

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“…The Poison Pseudo-Maximum Likelihood (PPML) model of Silva and Tenreyro (2006) is employed, as it is preferred as an appropriate tool in structural gravity equations with multilateral resistance terms (Anderson and Yotov, 2016;Saucier and Rana, 2017;Taguchi, 2015;Yang and Martinez-Zarzoso, 2014). The PPML also allows handling zero trade flows and obtaining more stable estimates in the presence of endogeneity and heteroscedasticity (Fally, 2015;Khurana and Nauriyal, 2017).…”

mentioning

confidence: 99%

Trade Creation and Trade Diversion Effects: The Case of the Asean Plus Six Free Trade Area

Handoyo

Sugiharti

Esquivias

2021

BEMP

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This study examines whether trade agreements promoted under the ASEAN+6 over the period 2007-2017 supported trade creation and/or trade diversion effects within three export product groups, namely, manufactured goods, primary products, and natural resources-based goods. Using a gravity model, we note that primary products offer pure trade creation (greater intra-bloc and extra-bloc trade). Manufactured products experienced trade creation in intra-bloc and extrabloc exports, while natural resources-based goods show trade creation in intraregional exports and trade creation in imports from extra-bloc.

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“…These divisions are constraints to economic growth, especially in developing countries. We follow (Vicard 2011;Hur and Park 2012;Saucier and Tariq 2017;Baier et al 2019;Campi and Duenas 2016;Bergstrand et al 2013Bergstrand et al , 2014 on their recent contributions on trade flow. In this study, trade openness is used to capture economic integration.…”

Section: Economic Integrationmentioning

confidence: 99%

Effect of Economic Integration on Agricultural Export Performance in Selected West African Countries

Shobande

2019

Economies

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The paper investigates the effect of economic integration on agricultural export performance in West African economies using the gravity model of bilateral trade on the annual time series data straddling the period 1970 to 2016. The empirical evidence is based on the pooled OLS and fixed effects estimator. We find that economic integration, as measured by trade openness, is a remarkably strong predictor of export performance in the region. We also examine the effect of geographical distance measured by effective nominal exchange rates and we find it has a negative effect on agricultural export performance. The paper recommends the adoption of a common currency to help mitigate exchange rate negativity that serves as resistance to trade in the region. Likewise, proactive agricultural research, extension and market driven strategies are strongly advocated for driven competition and economic efficiency within the regional agricultural sector.

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Do preferential trade agreements contribute to the development of trade? Taking into account the institutional heterogeneity

Cited by 17 publications

References 25 publications

Trade Effects of the EU–South Korea Free Trade Agreement in the Automotive Industry

Trade Effects of the EU–South Korea Free Trade Agreement in the Automotive Industry

Trade Creation and Trade Diversion Effects: The Case of the Asean Plus Six Free Trade Area

Effect of Economic Integration on Agricultural Export Performance in Selected West African Countries

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