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Regional Integration Agreements, Trade Flows and Economic Crisis: A Static and Dynamic Gravity Model

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  • Bassem Kahouli

Abstract

Regional trade agreements (RTA) strengthening is a crucial component of the contemporary global economy. These agreements are considered beneficial in many senses (economics: trade, FDI, growth, etc.) and are a stabilizing factor in international relations (politics). In this paper, I study the effects of RTAs on exports between members and non-members taking into account the Viner specification. I also try to estimate the effect of the recent economic crisis on the export flows and achievement of RTAs. I use a static and dynamic gravity model to 40 countries belonging to 6 heterogeneous RTAs for the period 1980–2011. This model is estimated taking into account the latest estimation techniques that treats endogeneity effects of integration and the existence of dynamic effect.

Suggested Citation

  • Bassem Kahouli, 2016. "Regional Integration Agreements, Trade Flows and Economic Crisis: A Static and Dynamic Gravity Model," International Economic Journal, Taylor & Francis Journals, vol. 30(4), pages 450-475, October.
    • Handle: RePEc:taf:intecj:v:30:y:2016:i:4:p:450-475
    DOI: 10.1080/10168737.2016.1204338
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    References listed on IDEAS

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    1. Kahouli, Bassem & Maktouf, Samir, 2015. "The determinants of FDI and the impact of the economic crisis on the implementation of RTAs: A static and dynamic gravity model," International Business Review, Elsevier, vol. 24(3), pages 518-529.
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    Cited by:

    1. Javad ABEDINI & Nicolas PÉRIDY, 2020. "The Relevance of Regional Integration in the Eu-romed Area: Evidence from a Logistic Median-Voter Model," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 52, pages 39-57.
    2. Naima Saeed & Kevin Cullinane & Victor Gekara & Prem Chhetri, 2021. "Reconfiguring maritime networks due to the Belt and Road Initiative: impact on bilateral trade flows," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(3), pages 381-400, September.
    3. Semih Karacan & Özge Korkmaz, 2022. "Turkish Exports Before and After the 2001 Financial Crisis: A Panel Gravity Model," Foreign Trade Review, , vol. 57(1), pages 27-40, February.
    4. Yelena Andreyeva & Andrei Maltsev & Mikhail Maslennikov & Artyom Ratner, 2018. "Global Economic Relations of a Region in the Investigations of the Institute of Economics of the Ural Branch of the Russian Academy of Sciences," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 612-622.
    5. Kahouli, Bassem & Omri, Anis, 2017. "Foreign direct investment, foreign trade and environment: New evidence from simultaneous-equation system of gravity models," Research in International Business and Finance, Elsevier, vol. 42(C), pages 353-364.
    6. Shahriar, Saleh & Qian, Lu & Kea, Sokvibol, 2018. "China's economic integration with the Greater Mekong Sub-region: An empirical analysis by a panel dynamic gravity model," Economics Discussion Papers 2018-44, Kiel Institute for the World Economy (IfW Kiel).
    7. Abeliansky, Ana Lucia & Barbero, Javier & Rodriguez-Crespo, Ernesto, 2021. "ICTs quality and quantity and the margins of trade," Telecommunications Policy, Elsevier, vol. 45(1).
    8. Germán González & Victoria Giordano, 2023. "Gravity Approach to the Impact of Crises on MERCOSUR Trade," Working Papers 280, Red Nacional de Investigadores en Economía (RedNIE).

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