The Economic Impact of Deepening Trade Agreements

Lionel Fontagné, Nadia Rocha, Michele Ruta and Gianluca Santoni

No 9529, CESifo Working Paper Series from CESifo

Abstract: This paper explores the economic impacts of preferential trade agreements, conditional on their level of ambition. We cluster 278 agreements, encompassing 910 provisions over 18 policy areas and estimate the trade elasticity for the different clusters. We then use these elasticities in a series of general equilibrium counterfactual situations for endowment economies, revealing that deepening existing agreements (the intensive margin of regional integration) could boost world trade by 5 percent and world GDP by 1 percent. The expected gains from deepening agreements within or across regions vary depending on the initial depth of agreements and the size of regional markets.

Keywords: preferential trade agreements; deep integration; structural gravity; general equilibrium (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: The Economic Impact of Deepening Trade Agreements (2023)
Working Paper: The Economic Impact of Deepening Trade Agreements (2023)
Working Paper: The Economic Impact of Deepening Trade Agreements (2023)
Working Paper: The Economic Impact of Deepening Trade Agreements (2023)
Working Paper: The Economic Impact of Deepening Trade Agreements (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9529

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