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The effect of economic integration and institutional quality of trade agreements on trade margins: evidence for Latin America

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  • Luis Florensa
  • Laura Márquez-Ramos
  • María Recalde

Abstract

This paper studies the effects of economic integration, as well as the institutional quality of existing trade agreements in Latin America, on the margins of trade. The analysis is performed on bilateral exports of goods from 11 member countries of the Latin American Integration Association (LAIA) over the period 1962–2009. The authors distinguish the effects of different levels of integration on trade margins and different “timing”; and they go further by considering the effect of institutional quality of trade agreements on different sectors. Their results provide evidence of the benefits of regional integration, which is in line with LAIA members’ development and industrialization objectives. Copyright Kiel Institute 2015

Suggested Citation

  • Luis Florensa & Laura Márquez-Ramos & María Recalde, 2015. "The effect of economic integration and institutional quality of trade agreements on trade margins: evidence for Latin America," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 329-351, May.
    • Handle: RePEc:spr:weltar:v:151:y:2015:i:2:p:329-351
    DOI: 10.1007/s10290-015-0209-x
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    References listed on IDEAS

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    2. Laura Márquez-Ramos & Víctor Martínez-Gómez, 2015. "Exportaciones de frutas y hortalizas desde Marruecos a la UE: Efectos de las preferencias comerciales," Working Papers 2015/13, Economics Department, Universitat Jaume I, Castellón (Spain).
    3. Claudio Candia Campano & Medardo Aguirre González & Lilliam Antón López & Javier Beltrán Valdebenito, 2018. "A gravity model of trade for Nicaraguan agricultural exports," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 391-428, July.
    4. Kwabena Nkansah & Paul Owusu Takyi & Daniel Sakyi & Frank Adusah-Poku, 2022. "Economic Integration Agreements and Export Survival in Ghana," Journal of African Trade, Springer, vol. 9(1), pages 1-22, December.
    5. Ayman El Dahrawy Sánchez‐Albornoz & Jacopo Timini, 2021. "Trade agreements and Latin American trade (creation and diversion) and welfare," The World Economy, Wiley Blackwell, vol. 44(7), pages 2004-2040, July.
    6. Isabel-María García-Sánchez & Lázaro Rodríguez-Ariza & María-del-Carmen Granada-Abarzuza, 2021. "The Influence of Female Directors and Institutional Pressures on Corporate Social Responsibility in Family Firms in Latin America," JRFM, MDPI, vol. 14(1), pages 1-20, January.
    7. Fuzhong Chen & Guohai Jiang, 2021. "Investigating the Impact of Institutional Quality on FDI: Are There Promotional Effects in Economic Integration Regions?," Sustainability, MDPI, vol. 13(20), pages 1-16, October.
    8. Duc Bao Nguyen & Anne‐Gaël Vaubourg, 2021. "Financial intermediation, trade agreements and international trade," The World Economy, Wiley Blackwell, vol. 44(3), pages 788-817, March.
    9. Lapeira, Maria & Samara, Georges & Kundu, Sumit & Kumaraswamy, Arun, 2024. "To export or to FDI? A configurational approach to family firm internationalization," Journal of World Business, Elsevier, vol. 59(2).
    10. Claudio Candia Campano & Medardo Aguirre González & Lilliam Antón López & Javier Beltrán Valdebenito, 2018. "A gravity model of trade for Nicaraguan agricultural exports," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 391-428, July.
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    More about this item

    Keywords

    Regional integration; Institutional quality; Extensive margin; Intensive margin; LAIA; Panel data; F14; F15;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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