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The effect of economic integration and institutional quality of trade agreements on trade margins: evidence for Latin America

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  • Luis Florensa
  • Laura Márquez-Ramos
  • María Recalde

Abstract

This paper studies the effects of economic integration, as well as the institutional quality of existing trade agreements in Latin America, on the margins of trade. The analysis is performed on bilateral exports of goods from 11 member countries of the Latin American Integration Association (LAIA) over the period 1962–2009. The authors distinguish the effects of different levels of integration on trade margins and different “timing”; and they go further by considering the effect of institutional quality of trade agreements on different sectors. Their results provide evidence of the benefits of regional integration, which is in line with LAIA members’ development and industrialization objectives. Copyright Kiel Institute 2015

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  • Luis Florensa & Laura Márquez-Ramos & María Recalde, 2015. "The effect of economic integration and institutional quality of trade agreements on trade margins: evidence for Latin America," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 329-351, May.
    • Handle: RePEc:spr:weltar:v:151:y:2015:i:2:p:329-351
    DOI: 10.1007/s10290-015-0209-x
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    2. Claudio Candia Campano & Medardo Aguirre González & Lilliam Antón López & Javier Beltrán Valdebenito, 2018. "A gravity model of trade for Nicaraguan agricultural exports," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 391-428, July.
    3. Ayman El Dahrawy Sánchez‐Albornoz & Jacopo Timini, 2021. "Trade agreements and Latin American trade (creation and diversion) and welfare," The World Economy, Wiley Blackwell, vol. 44(7), pages 2004-2040, July.
    4. Laura Márquez-Ramos & Víctor Martínez-Gómez, 2015. "Exportaciones de frutas y hortalizas desde Marruecos a la UE: Efectos de las preferencias comerciales," Working Papers 2015/13, Economics Department, Universitat Jaume I, Castellón (Spain).
    5. Claudio Candia Campano & Medardo Aguirre González & Lilliam Antón López & Javier Beltrán Valdebenito, 2018. "A gravity model of trade for Nicaraguan agricultural exports," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 391-428, July.
    6. Hulya Saygili & Kemal Türkcan, 2017. "Trade integration and export survival: Evidence from Turkish machinery products," Economics Bulletin, AccessEcon, vol. 37(3), pages 1918-1927.
    7. Kwabena Nkansah & Paul Owusu Takyi & Daniel Sakyi & Frank Adusah-Poku, 2022. "Economic Integration Agreements and Export Survival in Ghana," Journal of African Trade, Springer, vol. 9(1), pages 1-22, December.
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    More about this item

    Keywords

    Regional integration; Institutional quality; Extensive margin; Intensive margin; LAIA; Panel data; F14; F15;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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