Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002

James Anderson and Yoto Yotov

No 780, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: This paper infers the terms of trade effects of Free Trade Agreements (FTAs) with the structural gravity model. Using panel data methods to resolve two way causality between trade and FTAs, we estimate direct FTA effects on bilateral trade volume in 2 digit manufacturing goods from 1990-2002. We deduce the terms of trade changes implied by these volume effects for 40 countries plus a rest-of-the-world aggregate. Some gain over 10%, some lose less than 0.2%. Overall, using a novel measure of the change in iceberg melting, global efficiency rises 0.62%.

Keywords: Free Trade Agreements; Gravity; Terms of Trade; Coefficient of Resource Utilization (search for similar items in EconPapers)
JEL-codes: F13 F14 F16 (search for similar items in EconPapers)
Date: 2011-09-29, Revised 2011-10-11
New Economics Papers: this item is included in nep-int and nep-opm
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Citations: View citations in EconPapers (58)

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Related works:
Journal Article: Terms of trade and global efficiency effects of free trade agreements, 1990–2002 (2016)
Working Paper: Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002 (2012)
Working Paper: Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002 (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:boc:bocoec:780

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