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Free trade agreements and world obesity

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  • Michele Baggio
  • Alberto Chong

Abstract

We study the causal link between trade openness via free trade agreements (FTAs) and obesity rates. When applying a difference‐in‐differences approach by exploiting the year a country entered a free trade agreement with the United States during the period 1990–2016. We find a positive and causal impact of FTAs on obesity rates, which are statistically and economically significant. We show that our findings are robust to placebo tests, the use of synthetic control methods, and a maximized sample. Furthermore, we show that when using an event studies approach the equal trends assumption holds.

Suggested Citation

  • Michele Baggio & Alberto Chong, 2020. "Free trade agreements and world obesity," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 30-49, July.
    • Handle: RePEc:wly:soecon:v:87:y:2020:i:1:p:30-49
    DOI: 10.1002/soej.12447
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    1. Dmitry Arkhangelsky & Susan Athey & David A. Hirshberg & Guido W. Imbens & Stefan Wager, 2021. "Synthetic Difference-in-Differences," American Economic Review, American Economic Association, vol. 111(12), pages 4088-4118, December.
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    6. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
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    9. Goryakin, Yevgeniy & Lobstein, Tim & James, W. Philip T. & Suhrcke, Marc, 2015. "The impact of economic, political and social globalization on overweight and obesity in the 56 low and middle income countries," Social Science & Medicine, Elsevier, vol. 133(C), pages 67-76.
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    Cited by:

    1. Cáceres Bustamante, Javiera & López Giral, Dorotea & Muñoz Navia, Felipe, 2022. "The Chile-Republic of Korea Free Trade Agreement: a synthetic control assessment," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Gilbert, Rachel & Costlow, Leah & Matteson, Julia & Rauschendorfer, Jakob & Krivonos, Ekaterina & Block, Steven A. & Masters, William A., 2024. "Trade policy reform, retail food prices and access to healthy diets worldwide," World Development, Elsevier, vol. 177(C).
    3. Adu, Derick T. & Li, Wenying & Sawadgo, Wendiam P.M., 2023. "Estimating the unintended impact of the North American free trade agreement on U.S. public health," Social Science & Medicine, Elsevier, vol. 333(C).
    4. Marta Marson & Donatella Saccone & Elena Vallino, 2024. "Does food import contribute to rising obesity in low‐ and middle‐income countries?," Kyklos, Wiley Blackwell, vol. 77(2), pages 371-410, May.

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