Size of Regional Trade Agreements and Regional Trade Bias

Michele Fratianni and Chang Hoon Oh

No 2007-01, Working Papers from Indiana University, Kelley School of Business, Department of Business Economics and Public Policy

Abstract: We test the relationship between size of regional trade agreement (RTA) and regional trade bias using a gravity equation on a large sample of 143 countries for the period 1980-2003. We find that regional trade bias declines with the size of the club and that three of the four expanding RTAs have already surpassed their ‘optimal’ sizes. There is no evidence that RTAs have set protection levels against outsiders noncooperatively.

Keywords: RTA; regional trade bias; trade flows (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2007-01
New Economics Papers: this item is included in nep-int
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Related works:
Journal Article: Size of regional trade agreements and regional trade bias (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:iuk:wpaper:2007-01

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