 Do preferential trade agreements stimulate high-tech exports for low-income countries?Juyoung Cheong Economic Modelling, 2023, vol. 127, issue C Abstract: The literature is silent on how preferential trade agreements (PTAs) affect the types of products that developing countries export. Motivated by the studies suggesting a positive causal relationship between productivity embedded in export products and economic growth, we investigate whether PTAs encourage developing countries to export higher-technology products. Using Harmonized System (HS) 6-digit product-level data for 190 countries from 1996 to 2015, we find that low-income countries increase medium-technology exports while decreasing low-technology products under a PTA with more advanced countries. These results indicate an affirmative role of PTAs in their future economic performance. Our results also show that for middle-income countries, PTA trade effects on the intensive and extensive margins imply that which country they sign a PTA with may matter with regard to the channels through which the PTA can affect their future economic performance. Keywords: Free trade agreements; Gravity equation; Developing countries; Product heterogeneity; Skill-technology intensity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:127:y:2023:i:c:s0264999323002778 DOI: 10.1016/j.econmod.2023.106465 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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