Effects of Hub-and-Spoke Free Trade Agreements on Trade: A Panel Data Analysis

Jung Hur, Joseph Alba and Donghyun Park

World Development, 2010, vol. 38, issue 8, 1105-1113

Abstract: Summary We use panel data consisting of 96 countries and covering the period 1960-2000 to investigate the effects of free trade agreements (FTAs) and hub-and-spoke systems of FTA on exports. Our empirical results imply an annual growth rate of 5.57% in exports and hence a doubling of exports after 12.4 years between FTA partners. Non-overlapping FTAs account for 4.12%, while hub-and-spoke FTAs account for 1.45% of the estimated export growth rate. This indicates that, in addition to the direct trade liberalizing effect of FTAs, the hub-and-spoke nature of FTAs has an additional positive effect on trade.

Keywords: free; trade; agreement; hub; and; spoke; world; bilateral; trade; data; panel; data; analysis; fixed; effect; average; treatment; effect (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (17)

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Working Paper: Effects of Hub-and-Spoke Free Trade Agreements on Trade: Panel Data Analysis (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:38:y:2010:i:8:p:1105-1113

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