Estimating the Effects of Trade Agreements: Lessons From 60 Years of Methods and Data

Mario Larch and Yoto Yotov

No 2023-4, School of Economics Working Paper Series from LeBow College of Business, Drexel University

Abstract: Starting with Tinbergen (1962), quantifying the effects of regional trade agreements (RTAs) on international trade flows has always been among the most popular topics in the trade literature. Perhaps not surprisingly, to estimate the effects of RTAs, most researchers and policy analysts have relied on the workhorse model of trade—the gravity equation. Over the past 60 years, there have been many important developments in the RTA literature, both in terms of better methods to quantify their effects, and also in terms of more and higher quality data. The objective of this paper is to trace the evolution of the methods and data developments in the RTA literature, from Tinbergen’s very first exploration until today, and to critically evaluate their significance for our ability to measure the impact of RTAs (and other policies) on international trade.

Keywords: Regional Trade Agreements; Gravity Equation; Estimation; Methods; Data (search for similar items in EconPapers)
JEL-codes: F10 F14 F16 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2023-01-16
New Economics Papers: this item is included in nep-his and nep-int
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Estimating the effects of trade agreements: Lessons from 60 years of methods and data (2024)
Working Paper: Estimating the Effects of Trade Agreements: Lessons from 60 Years of Methods and Data (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:drxlwp:2023_004

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