Anatomy of the trade-effect of regional trade agreements and agenda for future research

Amjad Masood

MPRA Paper from University Library of Munich, Germany

Abstract: It is a common practice to take interval data with non-consecutive years to treat RTAs in gravity estimation. However, the current study shows that the interval approach yields biased estimates. Based on the findings, the study suggests emphasizing the question of "How do agreements affect trade?" in addition to the rather simple question of "Do agreements affect trade?" using consecutive data. It would be interesting to see how the trade-effect curve of a specific RTA, or a group of RTAs deviates from the curve for the cumulative effect of all RTAs in force worldwide.

Keywords: RTAs; Structural Gravity; Bilateral Trade; Interval Data (search for similar items in EconPapers)
JEL-codes: F10 F13 F14 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:108284

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