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Do Preferential Trade Agreements Increase Members’ Agri-food Trade?

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  • Ul Haq, Zahoor
  • Meilke, Karl D.
  • Orden, David

Abstract

This study estimates the effect of a diverse group of 30 PTAs on members’ trade of 26 agri-food products categorized into eight commodity sectors for 1990, 1995, 2000 and 2000 using disaggregated trade data for 40 countries and the Heckman selection model. Results show that whether reported zero trade-flows are considered actual or potential affects the size of the estimated PTA impacts. However, irrespective of the true nature of the zero trade-flows, the effects of PTAs are found positive and statistically significant. OLS estimates fall between the Heckman-model-derived conditional and unconditional effects of PTAs.

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Bibliographic Info

Paper provided by Agricultural Economics Society in its series 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK with number 135066.

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Date of creation: 28 Sep 2012
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Handle: RePEc:ags:aesc12:135066

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Keywords: Preferential Trade Agreements; agri-food trade; selection bias; Heckman; Food Consumption/Nutrition/Food Safety; F130; C180;

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