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Hub-and-Spokes Free-Trade-Agreements in the Presence of Technology Spillovers: An Application to the Western Hemisphere

Gouranga Das and Soamiely Andriamananjara

No 15870, Working Papers from United States International Trade Commission, Office of Economics

Abstract: Using a comparative-static general equilibrium model and in the context of the western hemisphere, this paper compares the economic effects of a "hub-and-spokes (HAS)" type of bilateral trade configuration (with Chile being the hub) with those of a more comprehensive regional FTA (namely, the FTAA). The model is augmented to account for the possibility of technology spillovers and its effective assimilation among participating economies. In particular, absorptive capacity, governance factor, proximity and socio-institutional congruence conjointly determine an economy's capacity to capture the technology that is transmitted from developed spoke US to other regions.

Keywords: International Relations/Trade; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 39
Date: 2004
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Journal Article: Hub-and-Spokes Free Trade Agreements in the Presence of Technology Spillovers: An Application to the Western Hemisphere (2006) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uitcoe:15870

DOI: 10.22004/ag.econ.15870

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