Preferential Trade Agreements and the Structure of International Trade

Neil Foster-McGregor and Robert Stehrer

No 61, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: In this paper we examine the impact of membership in Preferential Trade Agreements (PTAs) on trade between PTA members. Rather than considering the impact of PTA membership on the volume of trade we consider the impact of membership on the structure of trade. For a large sample of countries over the period 1962-2000 we find that membership in a PTA is associated with an increase in the extent of intra-industry trade. In addition, we find that the effect of PTA membership on IIT is larger when a PTA is formed between two developed countries.

Keywords: Preferential Trade Agreements; intra-industry trade; gravity equation (search for similar items in EconPapers)
JEL-codes: F10 F15 (search for similar items in EconPapers)
Pages: 29 pages including 6 Tables
Date: 2010-01
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Preferential trade agreements and the structure of international trade (2011)
Working Paper: Preferential trade agreements and the structure of international trade (2011)
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