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Nonconventional provisions in regional trade agreements: Do they enhance international trade?

Author

Listed:
  • Kazunobu Hayakawa

    (Japan External Trade Organization, Thailand)

  • Fukunari Kimura

    (Keio University, Japan)

  • Kaoru Nabeshima

    (Japan External Trade Organization, Japan)

Abstract

The scope of recent regional trade agreements (RTAs) has become much broader than before by the inclusion of nonconventional provisions such as those on competition policy and intellectual property rights protection. This paper empirically examines the extent to which those nonconventional provisions in RTAs enhance international trade between RTA member countries by estimating a gravity equation with detailed information on the contents of RTAs. We find that the provision for competition policy has the largest effect on international trade, followed by the government procurement provision. These two provisions have significant and positive impacts on intensive margin intensive margin (trade values per variety) and extensive margin (number of varieties traded)

Suggested Citation

  • Kazunobu Hayakawa & Fukunari Kimura & Kaoru Nabeshima, 2014. "Nonconventional provisions in regional trade agreements: Do they enhance international trade?," Journal of Applied Economics, Universidad del CEMA, vol. 17, pages 113-138, May.
    • Handle: RePEc:cem:jaecon:v:17:y:2014:n:1:p:113-138
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    Cited by:

    1. Mitsuyo Ando & Fukunari Kimura, 2014. "Evolution of Machinery Production Networks: Linkage of North America with East Asia," Asian Economic Papers, MIT Press, vol. 13(3), pages 121-160, Fall.
    2. Frederik Stender, 2018. "MERCOSUR in gravity: an accounting approach to analyzing its trade effects," International Economics and Economic Policy, Springer, vol. 15(2), pages 501-522, April.

    More about this item

    Keywords

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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