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Deep Trade Agreements and Global Value Chains

Edith Laget (), Alberto Osnago (), Nadia Rocha and Michele Ruta ()
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Edith Laget: World Bank
Alberto Osnago: World Trade Organization

Review of Industrial Organization, 2020, vol. 57, issue 2, No 10, 379-410

Abstract: Abstract A prominent argument as to why countries sign “deep” preferential trade agreements (PTAs) is to foster global value chains (GVCs) operations. By exploiting a new dataset on the content of PTAs, this paper quantifies the positive impact of deep PTAs on GVC participation, mostly driven by value-added trade in intermediate rather than in final goods and services. On average, each additional policy areas increases the domestic and the foreign value added of intermediates by 0.48 and 0.38%. Deep PTAs facilitate integration in industries with higher levels of value added. Their content also matters for GVC integration by income group.

Keywords: Deep Integration; Global value chains; Regionalism; Trade agreements (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2020
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Working Paper: Deep Trade Agreements and Global Value Chains (2019) Downloads
Working Paper: Deep trade agreements and global value chains (2018) Downloads
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DOI: 10.1007/s11151-020-09780-0

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