Heterogeneous Effects of Preferential Trade Agreements: How does Partner Similarity Matter?

Cheong, Juyoung; Kwak, Do Won; Tang, Kam Ki

doi:10.1016/j.worlddev.2014.08.021

Cited by 45 publications

(37 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Consequently based on the conclusions of Cheong, Kwak and Tang (2015), similarities between the Visegrad countries might explain why mainly intra the V-4 trade flows are increasing relatively more than the one with the other EU countries.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

The Impacts of Common Commercial Policy on Export Performances of Visegrad Countries

Akhvlediani¹,

Śledziewska²

2017

Prague Economic Papers

View full text Add to dashboard Cite

The paper aims to investigate the impact of Regional Trade Agreements (RTAs) and common commercial policy (CCP) on export performances of Visegrad group of countries (The Visegrad Four, V-4: Poland, the Czech Republic, Slovakia, Hungary) preceding and following the EU accession. The V-4, before becoming the EU members, have participated actively in regionalism, signing free trade agreements and customs unions which often also resulted in the extended economic integration. But since the EU accession in 2004, all RTAs of the new members were no longer valid as these countries became the parties of the CCP of the EU. To analyse whether CCP was beneficial on the export performances of the V-4 countries, we estimate the augmented gravity model by employing Poisson pseudo-maximum-likelihood (PPML) estimator for time periods before and after the EU accession, in 1999-2003 and 2004-2013, respectively.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

“…Cheong, Kwak and Tang (2015) put the research focus on the latter and study how similarity of partner country characteristics affects the change in trade flows under a preferential trade agreement (PTA). Authors construct the augmented gravity equation for data set covering 216 countries from 1980 to 2009.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impacts of Common Commercial Policy on Export Performances of Visegrad Countries

Akhvlediani¹,

Śledziewska²

2017

Prague Economic Papers

View full text Add to dashboard Cite

show abstract

“…And yet, as discussed in Sections 4.2.1 and 4.2.2, institutional and cultural similarities as well as closeness in technological and preference structures between countries can affect the potential for spillovers and convergence through economic exchanges (Bergstrand and Egger, 2013;Regolo, 2013;Bahar et al, 2014;Cheong et al, 2015). Recent work on Linder hypothesis suggests that South-South FDI may offer some additional benefits over North-South FDI.…”

Section: South-south Versus North-south Financementioning

confidence: 99%

“…Anderson and Marcouiller (2002), Belloc (2006), Levchenko (2007), Aeberhardt et al (2014), Fernandes et al (2016), Söderlund and Tingvall (2014) Lower Northern entry barriers make it easier for firms to export, enter, diversify, survive, and grow. Linder (1967), Hallak (2006Hallak ( , 2010, World Bank (2006), UNCTAD (2011, p. 42), Bergstrand and Egger (2013), Regolo (2013), Amighini and Sanfilippo (2014), Cheong et al (2015), Bahar et al (2014), Cheong et al (2015), Fajgelbaum et al (2015), Demir and Duan (2017) Similarities in institutions, culture, endowments, production structures, preferences, incomes, and technological development increase bilateral trade and finance and boost facilitate economic convergence and spillovers. They also allow for easier technology adoption and enable Southern investors to address local consumer needs better.…”

Section: Dynamic Theoriesmentioning

confidence: 99%

South–south and North–south Economic Exchanges: Does It Matter Who Is Exchanging What and With Whom?

Dahi

Demir

2017

Journal of Economic Surveys

View full text Add to dashboard Cite

This paper surveys the literature on costs and benefits of South–South versus North–South economic exchanges. Unlike the case for North–South exchanges, academic work on South–South economic relations has been historically limited given their marginal importance in the global economy. After the 1990s, the literature has changed in two main ways. First, South–South trade and finance since then has increased dramatically, leading to a bourgeoning literature on the topic. Second, the rise of the Emerging South has opened up new lines of inquiry to include not just the traditional topics of trade and preferential trading agreements, but also cover technology transfer, capital flows, labor migration, institutions, and environment. We discuss how this literature has evolved to take into account the greater complexity of South–South relations with a focus on China in Africa as well as the blurring of the lines between heterodox and mainstream analysis of South–South relations. We end the review by showing how the empirical and theoretical literature is exploring the increasing divergence within the global South between what we refer to as the Emerging South and the Rest of South.

show abstract

“…Unsurprisingly, the effects of a trade deal depend critically on the particular countries involved. Cheong, Kwak, and Tang () show that trade agreements have larger impacts on trade flows when they are between countries that are more similar. A trade deal between two developing countries generates about 2.5 times more gains than a regional agreement between a developing country and an industrial country.…”

Section: Introductionmentioning

confidence: 99%

The Increasing Irrelevance of Trade Diversion

Magee

2017

Kyklos

View full text Add to dashboard Cite

Summary This paper is intended as a guide for policymakers considering new regional trade agreements. The data provided here show that only about a quarter of imports are potentially subject to trade diversion from new agreements (i.e. they come from countries outside of regional trading blocs and in industries with positive most‐favored nation tariffs). Since this percentage is steadily declining with the increasing number of regional trade agreements and the falling level of tariffs, trade diversion is becoming increasingly irrelevant as a concern for new trade deals. The paper also estimates how each potential new bilateral free trade agreement would affect a country's imports and exports, as well as whether the increased imports would replace domestic production, imports from other RTA partners, or imports from non‐RTA partners. In this way, the estimates are able to shed light on which countries make the best partners for new regional trade agreements. Finally, the paper provides estimates of the trade effects for two large potential new regional agreements: the Transatlantic Trade and Investment Partnership and the Trans‐Pacific Partnership.

show abstract

Heterogeneous Effects of Preferential Trade Agreements: How does Partner Similarity Matter?

Cited by 45 publications

References 41 publications

The Impacts of Common Commercial Policy on Export Performances of Visegrad Countries

The Impacts of Common Commercial Policy on Export Performances of Visegrad Countries

South–south and North–south Economic Exchanges: Does It Matter Who Is Exchanging What and With Whom?

The Increasing Irrelevance of Trade Diversion

Contact Info

Product

Resources

About