Preferential Trade Liberalization and the Range of Exported Products: The Case of the Euro-Mediterranean FTA

Alberto AMURGO PACHECO ()

No 18-2006, HEI Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: The paper investigates how Preferential Trade Agreements (PTAs) affect the range of goods exported by a nation. We use the Melitz model and highly dis-aggregated data on Euro-Mediterranean trade to measure the effect of preferential trade liberalization on the range of traded products. By focusing on the zeros in the trade matrix, the paper finds evidence that at the time when the Euro-Mediterranean FTA started there was an expansion in the range of products traded by its members.

Keywords: International Economics; Melitz model; Trade policy; development; developing countries; new goods; Euro-Med; Mediterranean; European Union; Euro-Mediterranean FTA; trade matrix; range exported products; FTA; preferential trade liberalization; zeros (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-int
Date: 2006-10-09
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Persistent link: http://EconPapers.repec.org/RePEc:gii:giihei:heiwp18-2006

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