Trade Agreements and Economic Growth

Liu, Xuepeng

doi:10.1002/soej.12113

Cited by 19 publications

(12 citation statements)

References 54 publications

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“…It suggests that, once countries have secured access to each other's markets under MFN tariffs, PTA preferences become less effective in stimulating trade. This result mirrors a finding by Liu (2016) about the growth effects of PTAs. Second (columns 4 to 6), we interact the trade agreement variables with an LDCexporter indicator to investigate heterogeneities within and across trade arrangements.…”

Section: Heterogeneous Effectssupporting

confidence: 88%

The not‐so‐generalised effects of the Generalized System of Preferences

Ornelas¹,

Ritel²

2020

World Economy

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We use an empirical gravity equation approach to study how nonreciprocal trade preferences (NRTPs), enacted mainly through the Generalized System of Preferences, affect the exports of the beneficiary nations. In line with existing studies, the average trade effect stemming from nonreciprocal preferences is highly unstable across specifications. However, once we allow for heterogeneous effects, results become robust and economically important. Specifically, NRTPs have a strong effect on the exports of beneficiaries when they are members of the World Trade Organization and are very poor. Not-so-poor beneficiaries also expand foreign sales, but only if they are not WTO members. For all others, the average export effects of NRTPs are mute.

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Section: Heterogeneous Effectssupporting

confidence: 88%

The not‐so‐generalised effects of the Generalized System of Preferences

Ornelas¹,

Ritel²

2020

World Economy

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“…Meanwhile, the trade agreements literature has long been dominated by gravity equation models, showing the partial effects of trade agreements on bilateral trade flows or aggregate trade flows (Baier and Bergstrand, 2009;Anderson and Van Wincoop, 2003). There is also an emphasis on the importance of regional trade agreements (see Liu, 2016). However, in this paper, we explore the role of trade agreements in explaining the difference in external competitiveness among countries following different exchange rate regimes.…”

Section: Trade Agreementsmentioning

confidence: 99%

Currency regimes and external competitiveness: the role of institutions, trade agreements and monetary frameworks

Aman

Mallick

Nemlioglu

2021

Journal of Institutional Economics

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The literature lacks consensus on the role of currency regimes in explaining external competitiveness. Countries not only differ in terms of currency regimes, but can also have different institutional arrangements, namely trade agreements and inflation targeting (IT) frameworks in addition to the overall quality of governance. Hence, using the real effective exchange rate and by covering 35 developing countries over the period 1975–2014, we investigate the role of currency regimes in explaining the degree of misalignment while considering institutional factors. First, we find that intermediate regimes limit the currency misalignment with greater financial openness (FO). Second, non-reciprocal preferential trade agreements improve price competitiveness, whereas free trade and reciprocal ones can only be beneficial with a higher degree of FO. Third, misalignments in fixed regimes decline in the presence of stronger institutions or in countries with an IT type of monetary policy framework. The above results remain robust to alternative specifications.

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“…Economic growth may also lead to the expansion of international trade. Trade liberalization's objective is to promote trade that results to faster economic growth through Regional Trade Agreements (Liu, X., 2016). Park, I. and Park, S. (2016)…”

Section: Literature Reviewmentioning

confidence: 99%