The Uneven Roles of FTAs: Selection Effect or "Learning" Effect?
AbstractPrevious studies on the role of FTAs in promoting members' international trade have usually focused on FTA premium, ignoring the difference between selection effects - trade developments before the formation of FTAs - and "learning" effects - trade growth after the formation of FTAs. This paper considers this difference, using a large bilateral trade panel comprising data covering more than 50 years from 178 countries. SouthÂ–South FTAs and NorthÂ–South FTAs are most related to the selection effect while NorthÂ–North FTAs have a significant "learning" effect.
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Bibliographic InfoPaper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2010-19.
Length: 20 pages
Date of creation: Oct 2010
Date of revision:
Free trade agreements; selection effect; learning effect;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
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