Preferential Trade Agreements and the Margins of Imports

Neil Foster-McGregor

Open Economies Review, 2012, vol. 23, issue 5, 869-889

Abstract: This paper considers the importance of Preferential Trade Agreements (PTAs) in enhancing trade for a large sample of countries within the period 1962–2000. The paper builds upon the existing literature by examining whether any significant effects of PTAs occur through a change in the variety of imports (i.e. the extensive margin) or through a change in the volume of existing products (the intensive margin). Our results indicate that imports respond positively to the formation of a PTA between countries, and that much of this increase in imports occurs along the extensive margin. Copyright Springer Science+Business Media, LLC 2012

Keywords: Preferential trade agreements; Intensive and extensive margin; Gravity model; F10; F15 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1007/s11079-011-9213-5

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