Preferential Trade Liberalization and the Range of Exported Products: The Case of the Euro-Mediterranean FTA
AbstractThe paper investigates how Preferential Trade Agreements (PTAs) affect the range of goods exported by a nation. We use the Melitz model and highly dis-aggregated data on Euro-Mediterranean trade to measure the effect of preferential trade liberalization on the range of traded products. By focusing on the zeros in the trade matrix, the paper finds evidence that at the time when the Euro-Mediterranean FTA started there was an expansion in the range of products traded by its members.
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Bibliographic InfoPaper provided by Economics Section, The Graduate Institute of International Studies in its series IHEID Working Papers with number 18-2006.
Date of creation: 09 Oct 2006
Date of revision:
International Economics; Melitz model; Trade policy; development; developing countries; new goods; Euro-Med; Mediterranean; European Union; Euro-Mediterranean FTA; trade matrix; range exported products; FTA; preferential trade liberalization; zeros;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
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