Deep Trade Agreements and Heterogeneous Firms Exports

Gianluca Orefice, Matteo Neri Lainé and M. Ruta
Additional contact information
Matteo Neri Lainé: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: This paper studies the effect of regional trade agreements on firms' exports. Using detailed information on the content of trade agreements and firm-level exports for 31 developing countries between 2000 and 2020, the analysis shows that the depth of trade agreements matters for the export performance of firms. Moving from shallow to deep trade agreements boosts firms' exports, on average, by 3.6 percent. In line with models of trade with heterogeneous firms, the trade impact of deep trade agreements depends on firm's characteristics. The impact is stronger for large firms and firms involved in global value chains and is negative for small firms. Robustness tests and an Instrumental Variable strategy confirm the causal interpretation of the results. These heterogeneous impacts on firms' exports imply a selection effect of deep trade agreements with significant welfare consequences.

Keywords: Deep Trade Agreements; Export Performance; Firm Heterogeneity; Developing Countries (search for similar items in EconPapers)
Date: 2024-10-18
Note: View the original document on HAL open archive server: https://hal.science/hal-04743292v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-04743292v1/document (application/pdf)

Related works:
Working Paper: Deep Trade Agreements and Heterogeneous Firms Exports (2023)
Working Paper: Deep Trade Agreements and Heterogeneous Firms Exports (2023)
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: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-04743292

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().