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Greater than the sum of its parts? Does Austria profit from a widening network of EU free trade agreements?

Author

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  • Julia Grübler
  • Oliver Reiter

Abstract

Political debates and economic analyses often focus on single free trade agreements and their potential economic effects on participating trading partners. This study contributes to the literature by shedding light on the significance of trade agreements in the context of countries’ positions in worldwide trade agreement networks, by combining network theory with gravity trade modelling. We illustrate, both numerically and graphically, the evolution of the global web of trade agreements in general, and the network of the European Union specifically, accounting for the geographical and temporal change in the depth of agreements implemented. Gravity estimations for the period 1995-2017 distinguish the direct bilateral effects of trade agreements from indirect effects attributable to the scope of trade networks and countries’ positions therein.

Suggested Citation

  • Julia Grübler & Oliver Reiter, 2020. "Greater than the sum of its parts? Does Austria profit from a widening network of EU free trade agreements?," FIW Research Reports series y:2020:m:09, FIW.
    • Handle: RePEc:wsr:ecbook:y:2020:m:09
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    More about this item

    Keywords

    trade policy; Free trade agreements; Structural Gravity Model; network effects;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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