Regional Integration Agreements, Trade Flows and Economic Crisis: A Static and Dynamic Gravity Model

Bassem Kahouli

International Economic Journal, 2016, vol. 30, issue 4, 450-475

Abstract: Regional trade agreements (RTA) strengthening is a crucial component of the contemporary global economy. These agreements are considered beneficial in many senses (economics: trade, FDI, growth, etc.) and are a stabilizing factor in international relations (politics). In this paper, I study the effects of RTAs on exports between members and non-members taking into account the Viner specification. I also try to estimate the effect of the recent economic crisis on the export flows and achievement of RTAs. I use a static and dynamic gravity model to 40 countries belonging to 6 heterogeneous RTAs for the period 1980–2011. This model is estimated taking into account the latest estimation techniques that treats endogeneity effects of integration and the existence of dynamic effect.

Date: 2016
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DOI: 10.1080/10168737.2016.1204338

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