IDEAS home Printed from https://ideas.repec.org/b/wbk/wbpubs/37138.html
   My bibliography  Save this book

Effects of a Deeper Central European Free Trade Agreement

Author

Listed:
  • Alen Mulabdic
  • Michele Ruta

Abstract

This paper studies the economic effects of ‘deepening’ the Central European Free Trade Agreement (CEFTA). It combines new information on the content of trade agreements with gravity model estimates of the impact of deep trade agreements, agreements that go beyond the elimination of tariffs and other border restrictions. The analysis suggests that CEFTA is a relatively shallow trade agreement as it covers mostly policy areas under the current WTO mandate. The estimated trade impacts of CEFTA on member countries are relatively modest, varying between 0.02 and 7.4 percent. CEFTA’s members would gain from simultaneously deepening their integration reciprocally and vis-a-vis the EU. In particular, a trade agreement with the EU similar to the EU-Norway agreement could increase total exports by CEFTA members between 4 and 27 percent.

Suggested Citation

  • Alen Mulabdic & Michele Ruta, 2018. "Effects of a Deeper Central European Free Trade Agreement," World Bank Publications - Books, The World Bank Group, number 37138.
    • Handle: RePEc:wbk:wbpubs:37138
    as

    Download full text from publisher

    File URL: https://openknowledge.worldbank.org/bitstreams/ae0b8c02-c640-5124-a266-be5204c1d08b/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Aaditya Mattoo & Alen Mulabdic & Michele Ruta, 2022. "Trade creation and trade diversion in deep agreements," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(3), pages 1598-1637, August.
    3. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amelie Guillin & Isabelle Rabaud & Chahir Zaki, 2023. "Does the depth of trade agreements matter for trade in services?," The World Economy, Wiley Blackwell, vol. 46(12), pages 3616-3653, December.
    2. Lionel Fontagné & Nadia Rocha & Michele Ruta & Gianluca Santoni, 2023. "The Economic Impact of Deepening Trade Agreements," The World Bank Economic Review, World Bank, vol. 37(3), pages 366-388.
    3. Beniamino Quintieri & Giovanni Stamato, 2023. "Are preferential agreements beneficial to EU trade? New evidence from the EU–South Korea treaty," The World Economy, Wiley Blackwell, vol. 46(12), pages 3511-3541, December.
    4. Wen Yue & Qingxia Lin & Siyu Xu, 2023. "Investment effect of regional trade agreements: an analysis from the perspective of heterogeneous agreement provisions," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    5. Sébastien Miroudot & Davide Rigo, 2019. "Preferential Trade Agreements and Multinational Production," RSCAS Working Papers 2019/14, European University Institute.
    6. Swati Dhingra & Rebecca Freeman & Hanwei Huang, 2023. "The Impact of Non‐tariff Barriers on Trade and Welfare," Economica, London School of Economics and Political Science, vol. 90(357), pages 140-177, January.
    7. Mulabdic, Alen & Rotunno, Lorenzo, 2022. "Trade barriers in government procurement," European Economic Review, Elsevier, vol. 148(C).
    8. Cerqua, Augusto & Montalbano, Pierluigi & Temerbulatova, Zhansaya, 2024. "A decade of Eurasian integration: An ex-post non-parametric assessment of the Eurasian economic union," International Economics, Elsevier, vol. 178(C).
    9. Scott L. Baier & Narendra R. Regmi, 2023. "Using Machine Learning to Capture Heterogeneity in Trade Agreements," Open Economies Review, Springer, vol. 34(4), pages 863-894, September.
    10. Yang, Yichen & Liu, Wen, 2024. "Free trade agreements and domestic value added in exports: An analysis from the network perspective," Economic Modelling, Elsevier, vol. 132(C).
    11. Silviano Esteve-Pérez & Salvador Gil-Pareja & Rafael Llorca-Vivero, 2020. "Does the GATT/WTO promote trade? After all, Rose was right," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(2), pages 377-405, May.
    12. Timini, Jacopo & Viani, Francesca, 2022. "A highway across the Atlantic? Trade and welfare effects of the EU-Mercosur agreement," International Economics, Elsevier, vol. 169(C), pages 291-308.
    13. Dhingra, Swati & Freeman, Rebecca & Mavroeidi, Eleonora, 2018. "Beyond Tariff Reductions: What Extra Boost From Trade Agreement Provisions?," CEPR Discussion Papers 12795, C.E.P.R. Discussion Papers.
    14. Holger Breinlich & Valentina Corradi & Nadia Rocha & Michele Ruta & Joao M.C. Santos Silva & Tom Zylkin, 2021. "Machine Learning in International Trade Research ?- Evaluating the Impact of Trade Agreements," School of Economics Discussion Papers 0521, School of Economics, University of Surrey.
    15. Rebecca Freeman & Samuel Pienknagura, 2019. "Are all trade agreements equal? The role of distance in shaping the effect of economic integration agreements on trade flows," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(2), pages 257-285, May.
    16. Xiao, Keliang & Ridley, William, 2024. "The Regional Comprehensive Economic Partnership and its Implications for Global Trade," 2024 Annual Meeting, July 28-30, New Orleans, LA 344003, Agricultural and Applied Economics Association.
    17. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Antonio Martínez-Serrano, 2018. "The happy few: cross-country evidence of the euro effect on trade," Working Papers 1803, Department of Applied Economics II, Universidad de Valencia.
    18. Alen Mulabdic & Alberto Osnago & Michele Ruta, 2017. "Deep integration and UK-EU trade relations," Discussion Papers 2017-03, University of Nottingham, GEP.
    19. Mario Larch & Aiko F. Schmeißer & Joschka Wanner, 2021. "A Tale of (almost) 1001 Coefficients: The Deep and Heterogeneous Effects of the EU‐Turkey Customs Union," Journal of Common Market Studies, Wiley Blackwell, vol. 59(2), pages 242-260, March.
    20. Sunil Dash, 2024. "In the Gains from Trade as Firms Matter, So Do Their Sizes," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 18(1-2), pages 134-159, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbpubs:37138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tal Ayalon (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.