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A Re-evaluation of the impact of regional agreements on trade patterns

Lionel Fontagné () and Soledad Zignago ()

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Estimating the influence of regional agreements on trade patterns leads to a wide range of difficulties. We sort out some of the latter by relying on detailed trade data at the sector level, using a panel of 135 countries trading within 26 ISIC industries over the period 1976-2000. A first strategy consists in relying on a "traditional gravity" setting , augmented with internal trade flows. A second strategy relies on a theoretically founded border effect framework. Lastly dyadic fixed effects make it possible to control for unobserved characteristics of country pairs, hence for the endogeneity of arrangements among the various trade partners.

Keywords: Regional Integration; Border Effects; Gravity; gravité; effets frontières; Intégration régionale (search for similar items in EconPapers)
Date: 2007
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Published in Economie Internationale, 2007, 1 (109), pp.31-51

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