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Do Multilateral Trade Agreements Help Or Hinder The U.S. Current Account Balance?

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  • Mehdi Hojjat

Abstract

This paper investigates the effects of Regional Trade Agreements (RTAs) also known as bilateral or multilateral trade agreements on the U.S. current account balance. In contrast to the common belief that RTAs provide export opportunities for U.S. companies, hence improve the U.S. trade balances that are part of the U.S. current account balance, this paper shows that trade agreements adversely impact both of these accounts.

Suggested Citation

  • Mehdi Hojjat, 2014. "Do Multilateral Trade Agreements Help Or Hinder The U.S. Current Account Balance?," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 8(4), pages 111-118.
    • Handle: RePEc:ibf:gjbres:v:8:y:2014:i:4:p:111-118
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    References listed on IDEAS

    as
    1. Sang-Seung, Yi, 1996. "Endogenous formation of customs unions under imperfect competition: open regionalism is good," Journal of International Economics, Elsevier, vol. 41(1-2), pages 153-177, August.
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    More about this item

    Keywords

    Trading Bloc; Regional Trade Agreement; Current Account Balance;
    All these keywords.

    JEL classification:

    • F - International Economics
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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