The trade structure effects of endogenous regional trade agreements
Hartmut Egger (),
Peter Egger () and
Sir David Greenaway ()
Journal of International Economics, 2008, vol. 74, issue 2, 278-298
This paper formulates an empirical model to estimate the impact of endogenous new regional trade agreement (RTA) membership on trade structure. The likelihood of new RTA membership is influenced by economic fundamentals such as country size, factor endowments, and trade and investment costs. In a sample of country-pairs covering mainly the OECD economies we find a particularly strong effect of endogenous RTAs on intra-industry trade in a difference-in-difference analysis based on matching techniques. The associated trade volume effects are similar to the ones found in previous research on the effects of endogenous RTAs. Overall, this indicates that RTA membership might reduce inter-industry trade not only in relative but also in absolute terms and that the trade volume effect is due to the associated growth in trade within industries.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (49) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:74:y:2008:i:2:p:278-298
Access Statistics for this article
Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and RodrÃguez-Clare, AndrÃ©s
More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().