Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002

James Anderson and Yoto Yotov

No 2012-3, School of Economics Working Paper Series from LeBow College of Business, Drexel University

Abstract: This paper infers the terms of trade effects of the Free Trade Agreements (FTAs) of the 1990s. Using panel data methods to resolve two way causality between trade and FTAs, we estimate large FTA effects on bilateral trade volume in digit manufacturing goods from 1990-2002. We deduce the terms of trade changes implied by these volume effects for 40 countries plus a rest-of-the-world aggregate using the structural gravity model. Some countries gain over 10%, some lose less than 0.2%. Overall, using a novel measure of the change in iceberg melting,global efficiency rises 0.62%

Keywords: Free Trade Agreements; Gravity; Terms of Trade; Coefficient of Resource Utilization (search for similar items in EconPapers)
JEL-codes: F13 F14 F16 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2012-04-30
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Terms of trade and global efficiency effects of free trade agreements, 1990–2002 (2016)
Working Paper: Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002 (2011)
Working Paper: Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002 (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:drxlwp:2012_003

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