EconPapers    
Economics at your fingertips  
 

FTA and Economic Growth: A Nonparametric Approach

Jung Hur () and Cheolbeom Park ()

No 1009, Discussion Paper Series from Institute of Economic Research, Korea University

Abstract: This paper assesses whether a bilateral FTA exerts a positive growth effect of the economies of the two countries engaging in the FTA. It employs a nonparametric matching approach, which is more faithful to questions posed by trade theories, imposes no specific functional froms on the relation, and can be applied to a broad range of data structures. Unlike the results from earlier linear regression model approaches, we find an insignificant effect of the FTA on total economic growth. In particular, we demonstrate that an FTA exerts no significant growth effects in the one-to-10-year period after its launch. Furthermore, we detect an upward trend in the gap between the growth rates of per capita real GDP within a bilateral FTA. This implies uneven FTA effects across within an FTA, which may explain, in part, the insignificant effects of the FTA on the total economic growth.

Keywords: Free trade agreement; Growth; Matching; Treatment effect (search for similar items in EconPapers)
JEL-codes: F13 O24 C14 C21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fdg
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://econ.korea.ac.kr/~ri/WorkingPapers/w1009.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iek:wpaper:1009

Access Statistics for this paper

More papers in Discussion Paper Series from Institute of Economic Research, Korea University Contact information at EDIRC.
Bibliographic data for series maintained by Kim, Jisoo ().

 
Page updated 2019-06-06
Handle: RePEc:iek:wpaper:1009