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The Uneven Roles of FTAs: Selection Effect or “Learning†Effect?

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  • Lin, Faqin
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    Abstract

    Previous studies on the role of FTAs in promoting members’ international trade have usually focused on FTA premium, ignoring the difference between selection effects – trade developments before the formation of FTAs – and “learning†effects – trade growth after the formation of FTAs. This paper considers this difference, using a large bilateral trade panel comprising data covering more than 50 years from 178 countries. South–South FTAs and North–South FTAs are most related to the selection effect while North–North FTAs have a significant “learning†effect.

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    Bibliographic Info

    Article provided by Review of Applied Economics in its journal Review of Applied Economics.

    Volume (Year): 08 (2012)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:reapec:143460

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    Web page: http://www.lincoln.ac.nz/story11874.html

    Related research

    Keywords: Free trade agreements; selection effect; “learning†effect; International Development; International Relations/Trade; F10; F13; F15;

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    1. Dennis Novy, 2011. "Gravity Redux: Measuring International Trade Costs with Panel Data," CESifo Working Paper Series 3616, CESifo Group Munich.
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