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Anatomy of the trade-effect of regional trade agreements and agenda for future research

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  • Masood, Amjad

Abstract

It is a common practice to take interval data with non-consecutive years to treat RTAs in gravity estimation. However, the current study shows that the interval approach yields biased estimates. Based on the findings, the study suggests emphasizing the question of "How do agreements affect trade?" in addition to the rather simple question of "Do agreements affect trade?" using consecutive data. It would be interesting to see how the trade-effect curve of a specific RTA, or a group of RTAs deviates from the curve for the cumulative effect of all RTAs in force worldwide.

Suggested Citation

  • Masood, Amjad, 2021. "Anatomy of the trade-effect of regional trade agreements and agenda for future research," MPRA Paper 108284, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:108284
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    References listed on IDEAS

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    Cited by:

    1. Magdana Kondaridze & Jeff Luckstead, 2023. "Determinants of dairy‐product trade: Do subsidies matter?," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 857-873, September.
    2. Peter H. Egger & Mario Larch & Yoto V. Yotov, 2022. "Gravity Estimations with Interval Data: Revisiting the Impact of Free Trade Agreements," Economica, London School of Economics and Political Science, vol. 89(353), pages 44-61, January.

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    More about this item

    Keywords

    RTAs; Structural Gravity; Bilateral Trade; Interval Data;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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