IDEAS home Printed from https://ideas.repec.org/p/ags/aaea04/20201.html
   My bibliography  Save this paper

The Impact Of Historical And Regional Linkages On Free Trade In The Americas: A Gravity Model Analysis Across Sectors

Author

Listed:
  • Sandberg, H. Mikael

Abstract

This paper estimates the impact of regional linkages (i.e. regional trading agreements) and historical linkages (i.e. neo-colonial trade ties) on trade pattern in the Western Hemisphere using the gravity model of international trade. The estimation is made at the aggregate trade level as well as on the disaggregated level by using trade data corresponding to food products and manufactured goods respectively. The evidence suggests that significant distortions of trade patterns due to regional and historical linkages exist. It seems that smaller economies are more receptive to the effects of regionalism than larger ones and that the food sector is more affected by distortions than the manufactured goods sector.

Suggested Citation

  • Sandberg, H. Mikael, 2004. "The Impact Of Historical And Regional Linkages On Free Trade In The Americas: A Gravity Model Analysis Across Sectors," 2004 Annual meeting, August 1-4, Denver, CO 20201, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20201
    DOI: 10.22004/ag.econ.20201
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/20201/files/sp04sa05.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.20201?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. -, 1995. "Trade liberalization in the Western Hemisphere," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1389 edited by Idb, September.
    2. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    3. Thoumi, Francisco E., 1989. "Bilateral trade flows and economic integration in Latin America and the Caribbean," World Development, Elsevier, vol. 17(3), pages 421-429, March.
    4. José M. Salazar‐Xirinachs & José Tavares de Araujo Jr, 1999. "The Free Trade Area of the Americas: A Latin American Perspective," The World Economy, Wiley Blackwell, vol. 22(6), pages 783-797, August.
    5. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, vol. 47(1), pages 61-95, June.
    6. Mr. Philippe Egoume Bossogo & Mr. Chandima Mendis, 2002. "Trade and Integration in the Caribbean," IMF Working Papers 2002/148, International Monetary Fund.
    7. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-153, February.
    8. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March.
    9. Thomas F. Rutherford & Josefina Martinez, 2000. "Welfare Effects of Regional Trade Integration of Central American and Caribbean Natios with NAFTA and MERCOSUR," The World Economy, Wiley Blackwell, vol. 23(6), pages 799-825, June.
    10. David R. Lee, 1995. "Western Hemisphere Economic Integration: Implications and Prospects for Agricultural Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1274-1282.
    11. Arvind Panagariya, 1996. "The Free Trade Area of the Americas: Good for Latin America?," The World Economy, Wiley Blackwell, vol. 19(5), pages 485-515, September.
    12. Masahiro Endoh, 1999. "Trade creation and trade diversion in the EEC, the LAFTA and the CMEA: 1960-1994," Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 207-216.
    13. Shelton Nicholls & Anthony Birchwood & Philip Colthrust & Earl Boodoo, 2000. "The State of and Prospects for the Deepening and Widening of Caribbean Integration," The World Economy, Wiley Blackwell, vol. 23(9), pages 1161-1194, September.
    14. Fuentes, Juan Alberto, 1991. "Reconciling subregional and hemispheric integration," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Garcia Alvarez-Coque, Jose-Maria & Martinez-Gomez, Victor & Villanueva, Miquel, 2006. "Modelling Euro-Mediterranean Agricultural Trade," Working Papers 18875, TRADEAG - Agricultural Trade Agreements.
    2. Garcia-Alvarez-Coque, Jose Maria & Martí-Selva, Maria-Luis, 2006. "A Gravity Approach to Assess the Effects of Association Agreements on Euromediterranean Trade of Fruits and Vegetables," MPRA Paper 4124, University Library of Munich, Germany.
    3. Thi Hong Hanh Bui & Qiting Chen, 2017. "An Analysis of Factors Influencing Rice Export in Vietnam Based on Gravity Model," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(3), pages 830-844, September.
    4. Nguyen Thi Ha TRANG & Nguyen Thi Thanh TAM & Vu Hoang NAM, 2011. "An inquiry into the determinants of Vietnamese product export," Working Papers 08, Development and Policies Research Center (DEPOCEN), Vietnam.

    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. H. Mikael Sandberg & James Seale & Timothy Taylor, 2006. "History, regionalism, and CARICOM trade: A gravity model analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 42(5), pages 795-811.
    2. Cardamone, Paola, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(4), pages 421-473.
    3. Maria Cipollina & Luca Salvatici, 2010. "Reciprocal Trade Agreements in Gravity Models: A Meta‐Analysis," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 63-80, February.
    4. Sandberg, H. Mikael & Seale, James L., Jr., 2012. "The Impact of Historical and Regional Networks on Trade Volumes within the Western Hemisphere: A Gravity Analysis across Sectors," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 120071, Southern Agricultural Economics Association.
    5. Huiyao Chen & Changyuan Luo & Mary-Françoise Renard & Shiyi Sun, 2021. "EU-China Trade and intra-EU Trade: Substitute or Complementary?," Working Papers hal-03467473, HAL.
    6. Scott L. Baier & Amanda Kerr & Yoto V. Yotov, 2018. "Gravity, distance, and international trade," Chapters, in: Bruce A. Blonigen & Wesley W. Wilson (ed.), Handbook of International Trade and Transportation, chapter 2, pages 15-78, Edward Elgar Publishing.
    7. Robert J. R. Elliott & Kengo Ikemoto, 2004. "AFTA and the Asian Crisis: Help or Hindrance to ASEAN Intra‐Regional Trade?," Asian Economic Journal, East Asian Economic Association, vol. 18(1), pages 1-23, March.
    8. Salvador Gil & Rafael Llorca & J. Antonio Martínez‐Serrano, 2008. "Assessing the Enlargement and Deepening of the European Union," The World Economy, Wiley Blackwell, vol. 31(9), pages 1253-1272, September.
    9. Lucian Cernat, 2001. "ASSESSING REGIONAL TRADE ARRANGEMENTS: ARE SOUTH–SOUTH RTAs MORE TRADE DIVERTING?," International Trade 0109001, University Library of Munich, Germany.
    10. Lopez-Gonzalez, Javier, 2012. "The Impact of Free Trade Agreements on Vertical Specialisation," Papers 442, World Trade Institute.
    11. Jérôme Trotignon, 2009. "L'intégration régionale favorise-t-elle la multilatéralisation des échanges ?," Post-Print halshs-00335633, HAL.
    12. Salahuddin & Javed Iqbal & Misbah Nosheen, 2020. "Economic & Cultural Distance & Regional Integration: Evidence from Gravity Model Using Disaggregated Data for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(2), pages 243-274.
    13. Suhas Jadhav & Ishita Ghosh, 2024. "Future Prospects of the Gravity Model of Trade: A Bibliometric Review (1993–2021)," Foreign Trade Review, , vol. 59(1), pages 26-61, February.
    14. Daniel Lederman & Çaglar Özden, 2007. "Geopolitical Interests And Preferential Access To U.S. Markets," Economics and Politics, Wiley Blackwell, vol. 19(2), pages 235-258, July.
    15. I-Hui Cheng & Howard J. Wall, 2005. "Controlling for heterogeneity in gravity models of trade and integration," Review, Federal Reserve Bank of St. Louis, vol. 87(Jan), pages 49-63.
    16. Inmaculada Martinez-Zarzoso & Felicitas Nowak-Lehmann, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Taylor & Francis Journals, vol. 6(2), pages 291-316, November.
    17. C.de Sá Porto, Paulo & Roberto Azzoni, Carlos, 2006. "How International Integration Affects the Exports of Brazilian States," TD NEREUS 1-2006, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    18. 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.
    19. Michele Fratianni, 2007. "The Gravity Equation in International Trade," Working Papers 2007-17, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    20. Foo, Nam & Lean, Hooi Hooi & Salim, Ruhul, 2020. "The impact of China’s one belt one road initiative on international trade in the ASEAN region," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).

    More about this item

    Keywords

    International Relations/Trade;

    Statistics

    Access and download statistics

    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:ags:aaea04:20201. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.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.