Trade effects of industrial policies: Are preferential agreements a shield?

Alessandro Barattieri, Aaditya Mattoo and Daria Taglioni

Journal of Policy Modeling, 2025, vol. 47, issue 4, 830-841

Abstract: This paper explores the trade effects of industrial policy (IP), focusing on the role of preferential trade agreements (PTAs). The analysis uses data on product-level bilateral trade, industrial policy announcements, and rules on subsidies in different PTAs. The introduction of a new IP measure in a destination market reduces export growth to that market by about 0.28 percent. However, exports from fellow members of PTAs are not adversely affected and may be positively affected if the agreements have deep disciplines on subsidies. These findings suggest that PTAs have a shielding effect against the trade distorting effects of industrial policies.

Keywords: Industrial policies; Trade; Preferential trade agreements (search for similar items in EconPapers)
JEL-codes: F10 F14 F15 L52 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161893825000651
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Trade Effects of Industrial Policies: Are Preferential Agreements a Shield ? (2024)
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:jpolmo:v:47:y:2025:i:4:p:830-841

DOI: 10.1016/j.jpolmod.2025.06.015

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

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