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Deep Trade Agreements and Global Value Chains

Author

Listed:
  • Edith Laget

    (World Bank)

  • Alberto Osnago

    (World Trade Organization)

  • Nadia Rocha

    (World Bank)

  • Michele Ruta

    (World Bank)

Abstract

A prominent argument as to why countries sign “deep” preferential trade agreements (PTAs) is to foster global value chains (GVCs) operations. By exploiting a new dataset on the content of PTAs, this paper quantifies the positive impact of deep PTAs on GVC participation, mostly driven by value-added trade in intermediate rather than in final goods and services. On average, each additional policy areas increases the domestic and the foreign value added of intermediates by 0.48 and 0.38%. Deep PTAs facilitate integration in industries with higher levels of value added. Their content also matters for GVC integration by income group.

Suggested Citation

  • Edith Laget & Alberto Osnago & Nadia Rocha & Michele Ruta, 2020. "Deep Trade Agreements and Global Value Chains," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 379-410, September.
    • Handle: RePEc:kap:revind:v:57:y:2020:i:2:d:10.1007_s11151-020-09780-0
    DOI: 10.1007/s11151-020-09780-0
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    More about this item

    Keywords

    Deep Integration; Global value chains; Regionalism; Trade agreements;
    All these keywords.

    JEL classification:

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

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    Access and download statistics

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