Bilateral agreements and imbalances in international trade

Alexandre Loures (), Leonardo Mattos () and Erik Figueiredo ()
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Alexandre Loures: Instituto Mauro Borges
Leonardo Mattos: Federal University of Vicosa
Erik Figueiredo: Instituto Mauro Borges

Economics Bulletin, 2025, vol. 45, issue 2, 710 - 722

Abstract: Using a Ricardian model of trade, this article analyzes a new framework in the international trade literature, namely: the effects of "Regional Trade Agreements" -- RTAs -- on the imbalance of bilateral trade, understood as the share of net exports in trade bilateral gross. The results indicate that all types of trade agreements are associated with an average fall of 3.95% in the trade imbalance. In addition, the reported values are in line with the results of Baier, Bergstrand and Feng (2014) that there is an accumulation effect of the impacts of RTAs. Finally, the analyzes considering a generic measure for the RTAs underestimated the effects of the agreements.

Keywords: Regional Trade Agreements; international trade; trade imbalance; economic integration (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2025-06-30
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