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Heterogeneous trade agreements, WTO membership and international trade: an analysis using matching econometrics

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  • Tristan Kohl
  • Sofia Trojanowska

Abstract

This article explores the heterogeneous effects of trade agreements (TAs) and World Trade Organization (WTO) membership on the volume of international trade. We extend Baier and Bergstrand's (2009a) application of matching econometrics by distinguishing between different types of TAs and WTO participation and account for the endogenous nature of trade policy. For a panel data set covering 1960-2005 and 187 countries, we find that the treatment effect on international trade systematically varies with the type of TA and WTO membership.

Suggested Citation

  • Tristan Kohl & Sofia Trojanowska, 2015. "Heterogeneous trade agreements, WTO membership and international trade: an analysis using matching econometrics," Applied Economics, Taylor & Francis Journals, vol. 47(33), pages 3499-3509, July.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3499-3509
    DOI: 10.1080/00036846.2015.1016211
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    Cited by:

    1. Díaz-Mora, Carmen & Esteve-Pérez, Silviano & Gil-Pareja, Salvador, 2023. "A re-assessment of the heterogeneous effect of trade agreements using intra-national trade flows," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 940-951.
    2. Dutt, Pushan, 2020. "The WTO is not passé," European Economic Review, Elsevier, vol. 128(C).
    3. Didier Laurent, 2022. "Preferential trade agreements: what lessons for small island economies in the Indian Ocean ? [Les accords commerciaux préférentiels : quels enseignements pour les petites économies insulaires de l’," Post-Print hal-03710061, HAL.
    4. Gnangnon, Sèna Kimm, 2021. "WTO membership, the membership duration and the utilization of non-reciprocal trade preferences offered by the QUAD Countries," EconStor Preprints 247265, ZBW - Leibniz Information Centre for Economics.
    5. Campi, Mercedes & Dueñas, Marco, 2019. "Intellectual property rights, trade agreements, and international trade," Research Policy, Elsevier, vol. 48(3), pages 531-545.
    6. Lintunen, Julia, 2021. "An overview of China's regional trade agreements," BOFIT Policy Briefs 1/2021, Bank of Finland Institute for Emerging Economies (BOFIT).
    7. Laurent Didier, 2020. "Comparing the Impacts of Some North-North and North-South Trade Agreements on Trade in Services [Comparaison des impacts des accords commerciaux Nord-Nord et Nord-Sud sur le commerce des services]," Post-Print hal-03665971, HAL.
    8. Laurent Didier, 2018. "Do environmental provisions in regional trade agreements affect trade in services?," Economics Bulletin, AccessEcon, vol. 38(2), pages 733-750.
    9. Hinz, Julian, 2017. "The ties that bind: Geopolitical motivations for economic integration," Kiel Working Papers 2085, Kiel Institute for the World Economy (IfW Kiel).
    10. Gnangnon, Sèna Kimm, 2022. "Effect of the duration of membership in the World Trade Organization on Trademark Applications," EconStor Preprints 253266, ZBW - Leibniz Information Centre for Economics.
    11. Gnangnon, Sèna Kimm, 2022. "Effect of Aid for Trade flows on the Accession to the World Trade Organization," EconStor Preprints 261331, ZBW - Leibniz Information Centre for Economics.
    12. Silviano Esteve-Pérez & Salvador Gil-Pareja & Rafael Llorca-Vivero, 2020. "Does the GATT/WTO promote trade? After all, Rose was right," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(2), pages 377-405, May.
    13. Grohmann, Tobias, 2023. "Cultural similarity and migration: New evidence from a gravity model of international migration," GLO Discussion Paper Series 1349, Global Labor Organization (GLO).
    14. Jonas Gamso & Robert Grosse, 2021. "Trade agreement depth, foreign direct investment, and the moderating role of property rights," Journal of International Business Policy, Palgrave Macmillan, vol. 4(2), pages 308-325, June.
    15. Aruna Gounder & Rod Falvey & Gulasekaran Rajaguru, 2019. "The Effects of Preferential Trade Agreements on Foreign Direct Investment: Evidence from the African Caribbean Pacific Region," Open Economies Review, Springer, vol. 30(4), pages 695-717, September.
    16. Borchert,Ingo & Di Ubaldo,Mattia, 2021. "Deep Services Trade Agreements and their Effect on Trade and Value Added," Policy Research Working Paper Series 9608, The World Bank.
    17. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Antonio Martínez-Serrano, 2016. "A Re-Examination of the Effect of GATT/WTO on Trade," Open Economies Review, Springer, vol. 27(3), pages 561-584, July.

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