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The Uneven Roles of FTAs: Selection Effect or “Learning†Effect?

  • Lin, Faqin

Previous 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. South–South FTAs and North–South FTAs are most related to the selection effect while North–North FTAs have a significant “learning†effect.

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Article provided by Review of Applied Economics in its journal Review of Applied Economics.

Volume (Year): 08 (2012)
Issue (Month): 1 ()

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Handle: RePEc:ags:reapec:143460
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