Terms of trade and global efficiency effects of free trade agreements, 1990–2002

James Anderson and Yoto Yotov

Journal of International Economics, 2016, vol. 99, issue C, 279-298

Abstract: This paper infers the terms of trade effects of free trade agreements (FTAs) implemented in the 1990s. We estimate large FTA effects on bilateral trade volume in 2 digit manufacturing goods from 1990–2002, using panel data gravity methods to resolve two way causality. The terms of trade changes implied by these volume effects are deduced for 40 countries plus a rest-of-the-world aggregate using an endowments general equilibrium model. Some countries gain over 5% of real manufacturing income, some lose less than 0.3%. Global efficiency of manufactures trade rises 0.9% based on a distance function measure of iceberg melting.

Keywords: Free trade agreements; Gravity; Terms of Trade; Distance Function (search for similar items in EconPapers)
JEL-codes: F13 F14 F16 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (194)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022199615001531
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002 (2012)
Working Paper: Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002 (2011)
Working Paper: Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002 (2011)
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:eee:inecon:v:99:y:2016:i:c:p:279-298

DOI: 10.1016/j.jinteco.2015.10.006

Access Statistics for this article

Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and Rodríguez-Clare, Andrés

More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().