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Estimating the staged effects of regional economic integration on trade volumes

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  • I. -H. Cheng
  • Y. -Y. Tsai

Abstract

This article compares various specifications of the gravity model of trade, which are commonly used in the literature. It shows that most of them can be regarded as nested versions of a general specification in which the heterogeneity of bilateral country-pair fixed effects is accounted for. This article constructs a modified gravity model in which both the conventional gravity variables and price-effect variable are included. It intends to discuss the trend of the effects of the enlargement and enhancement of regional blocs, particularly taking account of the staged effects to investigate the effects of regional economic agreements on trade volumes. The differences of the effects across regional blocs are investigated.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 3 ()
Pages: 383-393

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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:383-393

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Cited by:
  1. Maria Cipollina & Luca Salvatici, 2010. "Reciprocal Trade Agreements in Gravity Models: A Meta-Analysis," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 63-80, 02.
  2. Geldi, Hatice Kerra, 2012. "Trade effects of regional integration: A panel cointegration analysis," Economic Modelling, Elsevier, vol. 29(5), pages 1566-1570.
  3. Suhail P & Sreejesh S, 2011. "The bilateral trade agreements and export performance of South Asian nations with special reference to India Sri Lanka Free Trade Agreement," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(42), pages 115-130, December.
  4. Petra Bubáková, 2013. "Gravity Model of International Trade, Its Variables, Assumptions, Problems and Applications," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2013(2), pages 3-24.

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