Preferential Trade Agreements and the Margins of Imports
AbstractThis paper considers the importance of Preferential Trade Agreements (PTAs) in enhancing trade for a large sample of countries within the period 1962–2000. The paper builds upon the existing literature by examining whether any significant effects of PTAs occur through a change in the variety of imports (i.e. the extensive margin) or through a change in the volume of existing products (the intensive margin). Our results indicate that imports respond positively to the formation of a PTA between countries, and that much of this increase in imports occurs along the extensive margin. Copyright Springer Science+Business Media, LLC 2012
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Bibliographic InfoArticle provided by Springer in its journal Open Economies Review.
Volume (Year): 23 (2012)
Issue (Month): 5 (November)
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Web page: http://www.springerlink.com/link.asp?id=100323
Preferential trade agreements; Intensive and extensive margin; Gravity model; F10; F15;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F15 - International Economics - - Trade - - - Economic Integration
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