Regionalism in standards: good or bad for trade?
AbstractRegional agreements on standards have been largely ignored by economists and blessed by multilateral trade rules. Using a constructed panel data that identifies the different types of agreements at the industry level, we find that such agreements increase the trade between participating countries but not necessarily with the rest of the world. Harmonization of standards may reduce the exports of excluded countries, especially in markets that have raised the stringency of standards. Mutual recognition agreements are more uniformly trade promoting unless they contain restrictive rules of origin, in which case intra-regional trade increases at the expense of imports from other countries.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 41 (2008)
Issue (Month): 3 (August)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Other versions of this item:
- Maggie X. Chen & Aaditya Mattoo, 2008. "Regionalism in Standards: Good or Bad for Trade?," Working Papers, The George Washington University, Institute for International Economic Policy 2009-14, The George Washington University, Institute for International Economic Policy.
- Chen, Maggie Xiaoyang & Mattoo, Aaditya, 2004. "Regionalism in standards - good or bad for trade?," Policy Research Working Paper Series 3458, The World Bank.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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