Trade effects of the Transatlantic Trade and Investment Partnership

Elisa Borghi, Rodolfo Helg and Lucia Tajoli ()

LIUC Papers in Economics from Cattaneo University (LIUC)

Abstract: In this paper we estimate the trade effects of the Transatlantic Trade and Investment Partnership by means of a gravity model. Even if making some assumptions related to the specificity of this trade agreement, our results are in line with the existing studies, implying unambiguously that a significant increase in trade is expected to follow a positive conclusion of the negotiation. Furthermore, the impact of the agreement increases significantly as the depth and the scope of the agreement grows. The results also show that there is a small but significant trade diversion effect, meaning that the agreement between EU and the US could produce a small reduction in trade with other areas. But given the much smaller coefficient of trade diversion compared to the trade creation effect, the expected net effect on trade remains strongly positive.

Pages: 18 pages
Date: 2014-12
New Economics Papers: this item is included in nep-int
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Published in LIUC papers, no.279, 2014 - Economia e Impresa 75

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Persistent link: https://EconPapers.repec.org/RePEc:liu:liucec:279

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