Trade at the margin: Estimating the economic implications of preferential trade agreements

Abstract

In particular, we analyze whether trade liberalization leads to increased trade flows because either firms trade more volume in products they have already traded before (intensive margin) or because they start to trade products they have not traded previously (extensive margin), or both. We test these arguments for the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) and exporting firms based in Costa Rica for the timeperiod 2008-2014. The results of our study suggest that the effects of CAFTA-DR depend not only on whether we analyze the extensive versus the intensive margin of trade but also whether the product in question is homogenous or differentiated and whether the exporting firm under analysis is small or large. In particular, we find support for the theoretical expectation that firms exporting heterogeneous products, Rev Int Organ (2018) 13:189-242 https://doi

EU services trade liberalization and economic regulation: Complements or substitutes?

“…This reflects different considerations, including a desire to 'level the playing field', address nonpecuniary negative spillovers, export 'good practice' norms and internationally agreed standards, and to safeguard the ability of governments to regulate economic behaviour. In the case of the EU, see e.g., Lavenex (2014), Lechner (2016) and Young (2015) on the export of norms and values; Van Den Putte and Orbie (2015) on the substance and drivers of inclusion of labor and related rights into EU agreements, and Spilker et al (2018), Postnikov and Bastiaens (2014) and Donno and Neureiter (2017) for empirical assessments of whether they have an impact. impedes entry or operations.…”

The Belt and Road Initiative and export variety: 1996–2019

“…The research on EV can basically be divided into macro studies (Felbermayr and Kohler 2006; Carrère et al 2011; Dennis and Shepherd 2011; Dogruel and Tekce 2011; Parteka and Tamberi 2013; Parteka 2020; Khan et al 2021; Lee and Ho 2022) and micro studies (Kamal and Zaki 2018; Spilker et al 2018; Kapri 2019; Du and Li 2020; Arkolakis et al 2021). The macro research on EV can be further grouped into country‐level, bilateral (Felbermayr and Kohler 2006) and cross‐difference studies (Parteka 2020).…”

Voting on a Trade Agreement: Firm Networks and Attitudes Toward Openness

“…This paper also speaks to the political science literature. Related studies include Urbatsch (2013) and Hicks et al (2014), who rely on surveys and census data to analyze how districts voted on the CAFTA referendum depending on their composition and political views, and Spilker et al (2008), who study how exporting firms in Costa Rica changed their exports after CAFTA was ratified.…”