Disaggregating PTAs at the Role of International Division of Labor on PTA Formation

Hazel Parcon
Additional contact information
Hazel Parcon: Department of Economics, University of Hawaii at Manoa

No 200806, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: This paper shows that additional insights on PTA formation can be gained from separating North-South, North-North, and South-South country pairs. Inter-industry trade is mostly significant for all country pairs and intra-industry trade has a positive impact only for North-South and North-North country pairs. Controlling for geographical proximity, countries choose PTA partners with which they have a history of trading. Using a simple model, this paper demonstrates that trade protection is not the necessary outcome with international product fragmentation. Empirical findings support the hypothesis that international division of labor has influenced the formation of North- South PTAs.

Keywords: preferential trading agreements; product fragmentation; trade policy (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2008-10-01
View list of references

Downloads: (external link)
http://www.economics.hawaii.edu/research/workingpapers/WP_08-6.pdf First version, 2008 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hai:wpaper:200806

Ordering information: This working paper can be ordered from
http://www.economics ... s/workingpapers.html

Access Statistics for this paper

More papers in Working Papers from University of Hawaii at Manoa, Department of Economics
Contact information at EDIRC.
Series data maintained by Web Technician ().