Revisiting the Effects of Regional Trading Agreements on trade flows with Proper Specification of the Gravity Model

Détails

ID Serval
serval:BIB_9EFD78264699
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
Revisiting the Effects of Regional Trading Agreements on trade flows with Proper Specification of the Gravity Model
Périodique
European Economic Review
Auteur(s)
Carrère  C.
Statut éditorial
Publié
Date de publication
2006
Volume
Volume 50
Numéro
Issue 2
Pages
pp. 223-247
Résumé
This paper uses a gravity model to assess ex-post regional trade agreements. The model includes 130 countries and is estimated with panel data over the period 1962–1996. The introduction of the correct number of dummy variables allows for identification of Vinerian trade creation and trade diversion effects, while the estimation method takes into account the unobservable characteristics of each pairs of trade partner countries, the endogeneity of some of the explanatory variables as well as a potential selection bias. In contrast to previous estimates, results show that regional agreements have generated a significant increase in trade between members, often at the expense of the rest of the world.
Mots-clé
Regional trade agreements, Gravity equation, Trade creation, Trade diversion, Panel data
Création de la notice
19/11/2007 11:42
Dernière modification de la notice
03/03/2018 20:01
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