Preferential trade agreements and the structure of international trade

Neil Foster-McGregor and Robert Stehrer

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Abstract: In this paper we examine the impact of membership in preferential trade agreements (PTAs) on trade between PTA members. Rather than considering the impact of PTA membership on the volume of trade we consider the impact of membership on the structure of trade. For a large sample of countries over the period 1962-2000 we find that membership in a PTA is associated with an increase in the extent of intra-industry trade. Our results indicate that this is especially the case for PTAs formed between richer countries, with the effects of PTAs between poorer countries found to be smaller.

Keywords: Preferential trade agreements; Intra-industry trade; Gravity equation; F10; F15 (search for similar items in EconPapers)
Date: 2011-03-13
Note: View the original document on HAL open archive server: https://hal.science/hal-00678454
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Published in Review of World Economics, 2011, 147 (3), pp.385-409. ⟨10.1007/s10290-011-0093-y⟩

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Journal Article: Preferential trade agreements and the structure of international trade (2011)
Working Paper: Preferential Trade Agreements and the Structure of International Trade (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00678454

DOI: 10.1007/s10290-011-0093-y

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