IDEAS home Printed from https://ideas.repec.org/a/ces/ifosdt/v66y2013i04p22-31.html
   My bibliography  Save this article

Dimensions and Effects of a Transatlantic Free Trade Agreement

Author

Listed:
  • Gabriel Felbermayr
  • Mario Larch
  • Lisandra Flach
  • Erdal Yalcin
  • Sebastian Benz
  • Finn Krüger

Abstract

A transatlantic free trade agreement that also breaks down non-tariff trade barriers has massive potential to create prosperity gains for its signatories. Specifically, such an agreement would lead to an increase in exports by medium-sized companies in the USA. Real wages in Germany would increase by around 1.6% and unemployment would drop slightly. Lasting negative effects on the world trade regime are unlikely.

Suggested Citation

  • Gabriel Felbermayr & Mario Larch & Lisandra Flach & Erdal Yalcin & Sebastian Benz & Finn Krüger, 2013. "Dimensions and Effects of a Transatlantic Free Trade Agreement," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(04), pages 22-31, February.
    • Handle: RePEc:ces:ifosdt:v:66:y:2013:i:04:p:22-31
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/ifosd_2013_04_3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2011. "Globalization and labor market outcomes: Wage bargaining, search frictions, and firm heterogeneity," Journal of Economic Theory, Elsevier, vol. 146(1), pages 39-73, January.
    2. Gabriel Felbermayr & Mario Larch & Wolfgang Lechthaler & Gabriel J. Felbermayr, 2012. "The Shimer-Puzzle of International Trade: A Quantitative Analysis," ifo Working Paper Series 134, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. Bagwell,Kyle W. & Mavroidis,Petros C. (ed.), 2011. "Preferential Trade Agreements," Cambridge Books, Cambridge University Press, number 9781107000339.
    4. E. Baldwin, Richard & Seghezza, Elena, 2010. "Are Trade Blocs Building or Stumbling Blocs?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 276-297.
    5. Peter Egger & Mario Larch & Kevin E. Staub & Rainer Winkelmann, 2011. "The Trade Effects of Endogenous Preferential Trade Agreements," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 113-143, August.
    6. Egger, Peter & Larch, Mario, 2011. "An assessment of the Europe agreements' effects on bilateral trade, GDP, and welfare," European Economic Review, Elsevier, vol. 55(2), pages 263-279, February.
    7. Rolf J. Langhammer & Daniel Piazolo & Horst Siebert, 2002. "Assessing Proposals for a Transatlantic Free Trade Area," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 57(02), pages 161-186, June.
    8. Fontagné, Lionel & Guillin, Amélie & Mitaritonna, Cristina, 2010. "Estimations of Tariff Equivalents for the Services Sectors," Conference papers 331941, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kolev, Galina, 2014. "TTIP: Mehr als Handelsliberalisierung," IW policy papers 11/2014, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    2. Gabriel Felbermayr & Mario Larch & Berend Diekmann & Rolf J. Langhammer, 2013. "Transatlantic Trade and Investment Partnership: What Effects Will It Have?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(06), pages 03-12, March.
    3. Gabriel Felbermayr & Mario Larch & Mario Larch, 2014. "Transatlantic Free Trade: Questions and Answers from the Vantage Point of Trade Theory," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(04), pages 03-17, January.
    4. Gabriel Felbermayr & Mario Larch, 2014. "Transatlantic Free Trade: Questions and Answers from the Vantage Point of Trade Theory," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(4), pages 03-17, January.
    5. Bofinger, Peter & Schnabel, Isabel & Feld, Lars P. & Schmidt, Christoph M. & Wieland, Volker, 2014. "Mehr Vertrauen in Marktprozesse. Jahresgutachten 2014/15 [More confidence in market processes. Annual Report 2014/15]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201415.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gabriel Felbermayr & Mario Larch & Finn Krüger & Lisandra Flach & Erdal Yalcin & Sebastian Benz, 2013. "Dimensionen und Auswirkungen eines Freihandelsabkommens zwischen der EU und den USA," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 62.
    2. Gabriel Felbermayr & Mario Larch & Gabriel J. Felbermayr, 2013. "The Transatlantic Trade and Investment Partnership (TTIP): Potentials, Problems and Perspectives," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(02), pages 49-60, August.
    3. Gabriel Felbermayr & Mario Larch, 2013. "The Transatlantic Trade and Investment Partnership (TTIP): Potentials, Problems and Perspectives," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(2), pages 49-60, August.
    4. Heid, Benedikt & Larch, Mario, 2016. "Gravity with unemployment," Journal of International Economics, Elsevier, vol. 101(C), pages 70-85.
    5. Peter H. Egger & Filip Tarlea, 2021. "Comparing Apples to Apples: Estimating Consistent Partial Effects of Preferential Economic Integration Agreements," Economica, London School of Economics and Political Science, vol. 88(350), pages 456-473, April.
    6. Eddy Bekkers & Hugo Rojas-Romagosa, 2018. "Non-tariff Measure Estimations in Different Impact Assessments," RSCAS Working Papers 2018/40, European University Institute.
    7. Pfaffermayr, Michael & Egger, Peter, 2011. "Structural Estimation of Gravity Models with Path-dependent Market Entry," CEPR Discussion Papers 8458, C.E.P.R. Discussion Papers.
    8. Sebastian Benz & Erdal Yalcin, 2013. "Quantifying the Economic Effects of an EU-Japan Free Trade Agreement," CESifo Working Paper Series 4319, CESifo.
    9. Sebastian Benz & Erdal Yalcin, 2015. "Productivity Versus Employment: Quantifying the Economic Effects of an EU–Japan Free Trade Agreement," The World Economy, Wiley Blackwell, vol. 38(6), pages 935-961, June.
    10. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    11. Peter Egger & Martin Gassebner, 2015. "International terrorism as a trade impediment?," Oxford Economic Papers, Oxford University Press, vol. 67(1), pages 42-62.
    12. Capuano, Stella & Hauptmann, Andreas & Schmerer, Hans-Jörg, 2014. "Trade and unions: Can exporters benefit from collective bargaining?," IAB-Discussion Paper 201424, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. Fontagné, Lionel & Santoni, Gianluca, 2021. "GVCs and the endogenous geography of RTAs," European Economic Review, Elsevier, vol. 132(C).
    14. Benedikt Heid & Mario Larch & Yoto V. Yotov, 2021. "Estimating the effects of non‐discriminatory trade policies within structural gravity models," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(1), pages 376-409, February.
    15. Aichele, Rahel & Heiland, Inga, 2018. "Where is the value added? Trade liberalization and production networks," Journal of International Economics, Elsevier, vol. 115(C), pages 130-144.
    16. Ryan Cardwell & Pascal L. Ghazalian, 2020. "The Effects of Untying International Food Assistance: The Case of Canada," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1056-1078, August.
    17. Bergstrand, Jeffrey H. & Larch, Mario & Yotov, Yoto V., 2015. "Economic integration agreements, border effects, and distance elasticities in the gravity equation," European Economic Review, Elsevier, vol. 78(C), pages 307-327.
    18. Peter H. Egger & Andrea Lassmann, 2015. "The Causal Impact of Common Native Language on International Trade: Evidence from a Spatial Regression Discontinuity Design," Economic Journal, Royal Economic Society, vol. 0(584), pages 699-745, May.
    19. Crowley, M. A. & Exton, O. & Han, L., 2018. "Renegotiation of Trade Agreements and Firm Exporting Decisions: Evidence from the Impact of Brexit on UK Exports," Cambridge Working Papers in Economics 1839, Faculty of Economics, University of Cambridge.
    20. Oliver Krebs & Michael Pflüger, 2018. "How deep is your love? A quantitative spatial analysis of the transatlantic trade partnership," Review of International Economics, Wiley Blackwell, vol. 26(1), pages 171-222, February.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ifosdt:v:66:y:2013:i:04:p:22-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/ifooode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.