International Trade Effects of Trans-Pacific Partnership for North America

Baybars Karacaovali and Deveraux Talagi
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Deveraux Talagi: Department of Economics, University of Hawaii

No 201701, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: This paper analyzes the international trade relations of the United States, Canada, and Mexico with the Trans-Pacific Partnership (TPP) member countries currently and historically in order to provide insights for TPP’s future effects provided it potentially comes into force. Using a gravity model estimation, we find that the existing free trade agreements (FTAs) between TPP countries (intra-TPP) and FTAs between TPP members and other countries (extra-TPP) have positively impacted trade in the 1980-2015 period. A successful completion of the TPP agreement promises to boost trade further.

Keywords: International trade; gravity model; free trade agreements; Trans-Pacific Partnership (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2017-01
New Economics Papers: this item is included in nep-int
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