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Preferential trade agreements and the structure of international trade

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  • Neil Foster

    ()

  • Robert Stehrer

Abstract

In this paper we examine the impact of membership in Preferential Trade Agreements (PTAs) on trade between PTA members. Rather than considering the impact of PTA membership on the volume of trade we consider the impact of membership on the structure of trade. For a large sample of countries over the period 1962-2000 we find that membership in a PTA is associated with an increase in the extent of intra-industry trade. In addition, we find that the effect of PTA membership on IIT is larger when a PTA is formed between two developed countries.

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 147 (2011)
Issue (Month): 3 (September)
Pages: 385-409

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Handle: RePEc:spr:weltar:v:147:y:2011:i:3:p:385-409

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Related research

Keywords: Preferential trade agreements; Intra-industry trade; Gravity equation; F10; F15;

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Citations

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Cited by:
  1. Neil Foster, 2012. "Preferential Trade Agreements and the Margins of Imports," Open Economies Review, Springer, vol. 23(5), pages 869-889, November.
  2. Valentina Raimondi & Margherita Scoppola & Alessandro Olper, 2012. "Preference erosion and the developing countries exports to the EU: a dynamic panel gravity approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(4), pages 707-732, December.
  3. United Nations ESCAP (ed.), 2011. "Asia-Pacific Trade and Investment Report 2011: Post-crisis trade and investment opportunities," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number aptir2596, December.
  4. Ferreira-Lopes, Alexandra & Sousa, Cândida & Carvalho, Helena & Crespo, Nuno, 2013. "Trade Protectionism and Intra-industry Trade: A USA - EU Comparison," MPRA Paper 49482, University Library of Munich, Germany.

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