Are Free Trade Agreements Contagious?

Richard Baldwin and Dany Jaimovich

No 7904, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper presents a new model of the domino effect which is used to generate an empirical index of how "contagious" FTAs are with respect to third nations due to the trade diversion. We test our contagion hypothesis together with alternative specifications of interdependence and other political, economical and geographical determinants of FTA formation. Our main finding is that contagion is present in our data and is robust to various econometric specifications and samples.

Keywords: Contagion effec; Free trade agreements; International trade (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2010-06
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Citations: View citations in EconPapers (25)

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Related works:
Journal Article: Are Free Trade Agreements contagious? (2012)
Working Paper: Are Free Trade Agreements Contagious? (2010)
Working Paper: Are Free Trade Agreements Contagious? (2009)
Working Paper: Are Free Trade Agreements Contagious? (2009)
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