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Preferential Trade Liberalization and the Range of Exported Products: The Case of the Euro-Mediterranean FTA

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Author Info
Alberto Amurgo Pacheco () (IUHEI, The Graduate Institute of International Studies, Geneva)

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Abstract

The 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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Publisher Info
Paper provided by Economics Section, The Graduate Institute of International Studies in its series HEI Working Papers with number 18-2006.

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Length: 38
Date of creation: 09 Oct 2006
Date of revision:
Handle: RePEc:gii:giihei:heiwp18-2006

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Related research
Keywords: 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;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F15 - International Economics - - Trade - - - Economic Integration

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2006. "Trading Partners and Trading Volumes," DEGIT Conference Papers c011_022, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  2. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November. [Downloadable!] (restricted)
    Other versions:
  3. Richard Baldwin, 2005. "Heterogeneous Firms and Trade: Testable and Untestable Properties of the Melitz Model," NBER Working Papers 11471, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March. [Downloadable!]
  5. Patricia Augier & Michael Gasiorek & Charles Lai-Tong, 2004. "Rules of Origin and the EU-Med Partnership: The Case of Textiles," The World Economy, Blackwell Publishing, vol. 27(9), pages 1449-1473, 09. [Downloadable!] (restricted)
  6. repec:rus:hseeco:122439 is not listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Cipollina, Maria & Salvatici, Luca, 2007. "EU and developing countries: an analysis of preferential margins on agricultural trade flows," Working Papers 7219, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
  2. Alberto Amurgo-Pacheco, Martha Denisse Pierola, 2007. "Patterns of export diversification in developing countries: intensive and extensive margins," HEI Working Papers heiwp20-2007, Economics Section, The Graduate Institute of International Studies, revised Jul 2007. [Downloadable!]
    Other versions:
  3. Elisa Gamberoni, . "Do unilateral trade preferences help export diversification? An investigation of the impact of European unilateral trade preferences on the extensive and intensive margin of trade," HEI Working Papers 17-2007, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  4. Agostino, Maria Rosaria & Aiello, Francesco & Cardamone, Paola, 2007. "Analyzing the Impact of Trade Preferences in Gravity Models. Does Aggregation Matter?," Working Papers 7294, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
  5. Cardamone, Paola, 2007. "A survey of the assessments of the effectiveness of Preferential Trade Agreements using gravity models," Working Papers 7282, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
    Other versions:
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