Economic integration agreements and the margins of international trade

Baier, Scott L.; Bergstrand, Jeffrey H.; Feng, Michael

doi:10.1016/j.jinteco.2014.03.005

Cited by 329 publications

(343 citation statements)

References 30 publications

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“…First, a series of papers analysing the effect of TAs on trade flows considers the endogeneity problem of TAs in the gravity approach at country level (see for example Baldwin, Taglioni 2006, Baier et al 2014. TA variables correlate with the error term, as there is an omitted variable bias due to the multilateral resistance terms, or MRT (Anderson, van Wincoop 2003).…”

Section: Background and Hypothesesmentioning

confidence: 99%

“…For instance, Baier et al (2014) and Márquez-Ramos et al (2015) adopted the intensive versus extensive decomposition proposed by Hummels, Klenow (2005), while Bensassi et al (2012) based their approach on the decomposition of trade proposed by Hillberry, Hummels (2008). These studies define the EM at sector-product level although it can be defined at different levels of aggregation such as firm or country level (Santos-Silva et al 2014).…”

Section: Background and Hypothesesmentioning

confidence: 99%

“…For the EM we can therefore distinguish between the appearance of trade in new products and in new markets. Although recent gravity literature has mainly focused on product diversification (Bensassi et al 2012, Baier et al 2014, Márquez-Ramos et al 2015, the EM in the pure sense of the term can be defined as those exports that provide new market entrants, while the IM in the pure sense is a result of continued growth in existing exporters' sales to the same destinations (Florensa et al 2015). Thus, in the present paper we focus on international diversification while acknowledging that there might be a trade-off between product diversification and international diversification due to limited resources (Meyer et al 2011).…”

Section: Background and Hypothesesmentioning

confidence: 99%

“…We require exogenous variation in TAs, however it is well known that the TA variable is an endogenous regressor in the conventional gravity approach, i.e. country-to-country (see, for example, Baier et al 2014).…”

Section: Introductionmentioning

confidence: 99%

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The Role of Institutional Environment in International Trade. The Case of Spanish Regions

Márquez‐Ramos

2016

REGION

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Abstract. We move beyond the nation-state as the unit of analysis and use subnational spatial variation to study the effect of the institutional environment on international trade. Additionally, we address the heterogeneous effect of trade agreements on different regions within a country. Employing a gravity model approach, we use a region-to-country dataset to estimate the determinants of Spanish regional exports and we apply quantile regressions for panel data. We find that better institutional quality of trade agreements leads to an increase in both the intensive and the extensive margins of trade. The institutional quality of trade agreements exerts a differential effect on regional exports at different locations within a country, although differences across Spanish regions seem to be larger for the intensive margin than for the extensive margin. However, we do find a common trend: for the relatively more important exporting regions the institutional quality of trade agreements is less relevant for trade margins. Therefore, our results posit that subnational spatial variation should be added to the analysis of the determinants of international trade flows.JEL classification: F14, F15, F55, R10

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Section: Background and Hypothesesmentioning

confidence: 99%

Section: Background and Hypothesesmentioning

confidence: 99%

Section: Background and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Role of Institutional Environment in International Trade. The Case of Spanish Regions

Márquez‐Ramos

2016

REGION

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“…Recentemente, Baier, Bergstrand & Feng (2013) chamaram a atenção para duas importantes fontes de heterogeneidade dos efeitos dos RTAs. Primeiro, registram-se diferenças de acordo com o nível de profundidade.…”

Section: Introductionunclassified