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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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    File URL: https://ucema.edu.ar/publicaciones/download/volume17/hayakawa.pdf
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    References listed on IDEAS

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    1. Gabriel J Felbermayr & Wilhelm Kohler, 2014. "Exploring the Intensive and Extensive Margins of World Trade," World Scientific Book Chapters,in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 4, pages 115-148 World Scientific Publishing Co. Pte. Ltd..
    2. Guglielmo Caporale & Christophe Rault & Robert Sova & Anamaria Sova, 2009. "On the bilateral trade effects of free trade agreements between the EU-15 and the CEEC-4 countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(2), pages 189-206, July.
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    4. Denis Medvedev, 2010. "Preferential trade agreements and their role in world trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(2), pages 199-222, June.
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    11. repec:lmu:muenar:20646 is not listed on IDEAS
    12. Feenstra, Robert C, 2002. "Border Effects and the Gravity Equation: Consistent Methods for Estimation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 491-506, December.
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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. repec:kap:iecepo:v:15:y:2018:i:2:d:10.1007_s10368-017-0400-8 is not listed on IDEAS

    More about this item

    Keywords

    gravity equation; RTA; extensive and intensive margins;

    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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