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

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  • Lin, Faqin

Abstract

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.

Suggested Citation

  • Lin, Faqin, 2012. "The Uneven Roles of FTAs: Selection Effect or “Learning” Effect?," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 0(Number 1), pages 1-13, February.
  • Handle: RePEc:ags:reapec:143460
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    References listed on IDEAS

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    More about this item

    Keywords

    International Development; International Relations/Trade;

    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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