Upgrading of Exports: Does the Integration into Trade Agreements Pave the Way to Product Upgrading?
Additional contact information
Katharina Längle: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
This paper investigates whether trade agreements help middle income countries to upgrade their product portfolio exported to high income countries.Combining product level trade flows from the CEPII-Baci database with information on product complexity from the Atlas of Economic Complexity and the DESTA database on trade agreements, this question is studied for a set of 135 countries between 2001 and 2013 based on a gravity framework. In this context, the development of the extensive and intensive margins for high complex products is considered as proxy for product upgrading. By exploiting the cross sectional dimension of the panel, this study finds that middle income countries export a wider product scope of complex goods if their trade relation is covered by an agreement including trade provisions related to competition , services and investments, compared to country pairs without an equivalent framework. Still, the consideration of the time dimension leads to ambiguous effect of these provisions. While positive estimation results for the intensive margin of complex goods are in line with related papers, negative effects on the extensive margin of complex goods are at odds with expectations of the mechanism between agreements and trade. JEL classification: F14, F15, F53.
Keywords: Empirical Studies of Trade; Economic Complexity; Trade Integration (search for similar items in EconPapers)
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-02548689
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-02548689
Access Statistics for this paper
More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().