IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v59y2023i6p1960-1975.html
   My bibliography  Save this article

Deepening of Free Trade Agreements and International Trade: Evidence from China

Author

Listed:
  • Jun Wang
  • Chengjuan Liao
  • Jie Xiong
  • Chengbo Wang

Abstract

The expansion of FTA rules from the border to the “depth” within the border can promote the reduction of trade barriers between member countries. Yet, this can also increase the cost of compliance. Hence, this research examines the impact of FTA deepening on China’s import and export trade based on the trade data between China and 21FTA partner countries over the period of 2005–2018. This paper introduces the FTA deepening index, constructs a structural gravity model, and empirically applies PPML estimation and instrumental variable methods. The results show that FTA deepening promotes the growth of China’s international trade, and the effect on promoting imports is greater than that of export promotion. Additionally, a heterogeneity test between countries and products is carried out. Based on this, our results reveal that FTA deepening has a more significant promoting effect on China’s trade imports from developed countries and has a more significant restraining effect on China’s exports to developed countries. Furthermore, we demonstrate that the depth of FTA has a less positive impact on China’s agricultural trade than on industrial products.

Suggested Citation

  • Jun Wang & Chengjuan Liao & Jie Xiong & Chengbo Wang, 2023. "Deepening of Free Trade Agreements and International Trade: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(6), pages 1960-1975, May.
    • Handle: RePEc:mes:emfitr:v:59:y:2023:i:6:p:1960-1975
    DOI: 10.1080/1540496X.2022.2159372
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2022.2159372
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2022.2159372?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:mes:emfitr:v:59:y:2023:i:6:p:1960-1975. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    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.