Regional Trade Agreements

Freund, Caroline; Ornelas, Emanuel

doi:10.1596/1813-9450-5314

Cited by 45 publications

(23 citation statements)

References 97 publications

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“…Thus, the inclination toward regional trade integration did not hinder the achievement of the Uruguay Round negotiations because the countries driving the multilateral trade system after the Second World War were the same nations that promoted regional trade liberalization (Baldwin 2004). Moreover, RTAs can also encourage foreign direct investment (Lawrence 1996, Kimura and Ando 2005, Freund and Ornelas 2010 and economic growth in member countries through technological transfer.…”

Section: Introductionmentioning

confidence: 99%

A New Examination of the Impacts of Regional Trade Agreements on International Trade Patterns

Nguyen

2019

Journal of Economic Integration

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This paper assesses the ex-post effects on the international trading system of eighteen pluri-lateral regional trade agreements (RTAs) by examining their impacts on intra-bloc trade and on the tendency of members to trade with the rest of the world. This study is based on a gravity model with a solid theoretical foundation involving Anderson and van Wincoop's (2003) multilateral resistance terms. The model assesses 160 countries over a time period that extends from 1960 to 2014. Making use of the Poisson pseudo maximum likelihood (PPML) estimator and selecting the proper RTA variable and fixed effects settings, our analysis confirms the widespread trade-promoting effects of RTAs with mixed effects on extra-bloc trade. However, trade diversion in terms of bloc exports and imports are detected mostly in American and African trade agreements in many cases. By contrast, export and import creations are more prominent for RTAs in Europe and Asia.

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Section: Introductionmentioning

confidence: 99%

A New Examination of the Impacts of Regional Trade Agreements on International Trade Patterns

Nguyen

2019

Journal of Economic Integration

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“…Kandogan () confirms trade‐diverting effects of agreements with CEEC and the Southern Mediterranean countries. Freund and Ornelas () survey the literature and conclude that trade diversion matters in some agreements and some industrial sectors.…”

Section: Literature Reviewmentioning

confidence: 99%

Trade Effects of the European Union's Service Directive: Contrastingex anteEstimates with Empirical Evidence

Dettmer

2014

World Economy

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One of the top priorities to improve the European Union's growth performance is the creation of a single market for services. The directive on services adopted by the Parliament and the Council by the end of 2006 aims at removing barriers to the free movement of service providers on the internal market. Previous studies quantified ex ante sizable effects of implementing the directive in its original form. This paper is a first attempt to evaluate ex post the trade effects induced by a directive – which excludes the country‐of‐origin principle – by performing a difference‐in‐difference‐(in‐differences) estimator on a sample of EU‐ and non‐EU countries in the period 2004 to 10. We account for non‐tariff trade barriers and the endogeneity of regional trade agreements and find that the service directive adds to a reallocation of business services trade within the EU. Accounting for the trade effect of past deregulations, the EU directive fosters a deeper integration of the new member states into the European service value‐added‐chain and promotes business service exports from third countries towards the EU significantly more than trade of country pairs in the control group. The reorientation of the EU‐15 towards the new members is in turn associated with less intense intra‐EU‐10 businesses, while business trade between EU‐15 members is not significantly affected.

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“…The majority of the results surveyed corroborate that the existence of an RTA is associated with positive and significant increases bilateral trade flows among the parties, although there is considerable variation in the magnitude of these effects depending on the RTAs being analysed. Another review on the impact of RTAs is provided by Freund and Ornelas (2010), who sum up that most existing empirical studies find evidence for positive net trade creation. Acharya et al (2011) examine 20 regional trade agreements and customs unions and find that almost all the RTAs have led to greater levels of exra-RTA imports and exports, as well as higher intra-RTA trade.…”

Section: Transparency and Economic Integration: Overview Of Empirmentioning

confidence: 99%

Quantitative Evidence on Transparency in Regional Trade Agreements

Lejárraga

Shepherd²

2013

OECD Trade Policy Papers

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QUANTITATIVE EVIDENCE ON TRANSPARENCY IN REGIONAL TRADE AGREEMENTS Iza Lejárraga (OECD) and Ben Shepherd (Developing Trade Consultants Ltd.) What influences the adoption of transparency obligations in trade agreements, and what are its effects? This paper uses a new dataset on transparency provisions in over a hundred regional trade agreements (RTAs) to provide empirical evidence of the political economy determinants of international transparency commitments, as well as the trade impact of negotiating such transparency provisions in RTAs. The study finds that RTAs with deeper mechanisms for enhancing transparency appear to be more strongly trade-promoting than those with shallower commitments on transparency. Concretely, each additional transparency commitment negotiated in an RTA is associated with an increase in bilateral trade flows of more than one percent. Considering that comprehensive RTAs typically contain a dozen of such commitments, countries that opt for a comprehensive transparency agenda can expect to gain substantial increases in intra-regional trade. Moreover, the findings suggest that the readiness of trading partners to adhere to transparency norms is influenced by the quality of home institutions, which is consistent with a view that strengthening governance and regulatory capacities can contribute to a broader diffusion of transparency practices in international trade. Overall, the results of the analysis suggest that transparency should remain an important element of the trade agenda, both at the regional and multilateral levels.

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Regional Trade Agreements

Cited by 45 publications

References 97 publications

A New Examination of the Impacts of Regional Trade Agreements on International Trade Patterns

A New Examination of the Impacts of Regional Trade Agreements on International Trade Patterns

Trade Effects of the European Union's Service Directive: Contrastingex anteEstimates with Empirical Evidence

Quantitative Evidence on Transparency in Regional Trade Agreements

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