On the bilateral trade effects of free trade agreements between the EU-15 and the CEEC-4 countries

Caporale, Guglielmo Maria; Rault, Christophe; Şova, Robert; Sova, Anamaria

doi:10.1007/s10290-009-0011-8

Cited by 49 publications

(35 citation statements)

References 29 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Econometric studies assessing the impact of trade policies on trade have found evidence of endogeneity for the trade policy variable (Lederman andÖzden 2004;Baier and Bergstrand 2007;Caporale et al 2009). Intuitively, simultaneity between FDI and tariffs may arise if closer relations in terms of investments between the two countries affect the level of bilateral tariffs.…”

Section: Data and Econometric Issuesmentioning

confidence: 98%

Tariffs and EU countries foreign direct investment: Evidence from a dynamic panel model

Cardamone

Scoppola

2014

The Journal of International Trade & Economic Development

View full text Add to dashboard Cite

According to the models of the multinational enterprise tariffs play a fundamental role in determining the pattern of foreign direct investment (FDI). The aim of this paper is to assess the impact of tariffs on the outward stocks of FDI of the European Union (EU). We estimate a model based on the knowledgecapital theory of the multinational enterprise over the period 1995-2008 by using a sample of five EU countries and 24 partner countries. We consider, first, manufacturing sector as a whole and, then, six manufacturing industries defined at the two-digit level of the Nomenclature statistique des activitéś economiques dans la Communauté européenne (NACE) classification. Explanatory variables include an index of applied bilateral tariffs and a dummy to capture the presence of bilateral investment treaties (BITs). A dynamic panel model is estimated through the generalized method of moments estimator, taking also into account the endogeneity of regressors. The results show that the pattern of EU outward FDI is a mix of vertical and horizontal FDI. BITs in force have a significant and positive impact on the outward FDI. The impact of tariffs varies across industries and countries, suggesting the predominance of horizontal FDI in some industries, and the existence of vertical FDI in others.

show abstract

Section: Data and Econometric Issuesmentioning

confidence: 98%

Tariffs and EU countries foreign direct investment: Evidence from a dynamic panel model

Cardamone

Scoppola

2014

The Journal of International Trade & Economic Development

View full text Add to dashboard Cite

show abstract

“…In addition, there exists an extensive literature on the effects of regional integration on trade flows. Most studies are based on Viner's () framework and analyze the dynamic effects of geographical size, industry location, and economies of scale (see, e.g., Caporale, Rault, Sova, & Sova, ). Viner shows that a move to free trade between two countries that maintain their respective external tariffs toward the rest of the world could leave both countries worse off.…”

Section: Literature Reviewmentioning

confidence: 99%

Competitive devaluations in commodity‐based economies: Colombia and the Pacific Alliance Group

Caporale

Costamagna²,

Rossini

2017

Review Development Economics

Self Cite

View full text Add to dashboard Cite

This paper investigates whether there is an S-curve in Colombia using bilateral and disaggregated quarterly data for the period 1991 to 2014. More precisely, the shortrun effects of a depreciation on the trade balance (TB) are analyzed in 27 industries covered by the Pacific Alliance Group free trade agreement. The S-curve found in sectors representing 30 percent of total industrial production suggests that in these cases competitive devaluations have a positive effect on the TB in the short run. Our findings have important policy implications: since only large competitive devaluations can restore TB equilibrium, industrial restructuring would appear to be a more sensible strategy, though this cannot be achieved in the short run and is instead a medium-to long-term goal.

show abstract

“…Such effects have been quantified by applying the well-known gravity equation for international trade data, the right-hand side of which includes FTA dummy variables that take unity if trading partners belong to the same FTA and zero otherwise (e.g., Baier and Bergstrand 2007;Caporale et al 2009;Medvedev 2010;Roy 2010;and Vicard 2009). In this sort of analyses, the coefficient for the FTA dummy represents total trade creation effects of FTAs, which are often proved to be significantly positive.…”

mentioning

confidence: 99%

How Much Do Free Trade Agreements Reduce Impediments to Trade?

Hayakawa¹,

Kimura

2014

Open Econ Rev

View full text Add to dashboard Cite

This paper empirically investigates how far free trade agreements (FTAs) successfully lower tariff rates and non-tariff barriers (NTBs) for manufacturing industries by employing the bilateral tariff and NTB data in time series for countries in the world. We find that FTAs under GATT Article XXIV and the Enabling Clause are associated with the 2.0 and 1.5 % lower tariff rates, respectively. In the case of NTBs, on the other hand, their respective effects are 2.1 and 2.4 %. Also, compared with these effects of FTAs, WTO membership does not have large effects on tariff rates but does have them on NTBs. These results provide important implication for the literature on the numerical assessment of FTAs.

show abstract

On the bilateral trade effects of free trade agreements between the EU-15 and the CEEC-4 countries

Cited by 49 publications

References 29 publications

Tariffs and EU countries foreign direct investment: Evidence from a dynamic panel model

Tariffs and EU countries foreign direct investment: Evidence from a dynamic panel model

Competitive devaluations in commodity‐based economies: Colombia and the Pacific Alliance Group

How Much Do Free Trade Agreements Reduce Impediments to Trade?

Contact Info

Product

Resources

About