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Effects of Regional Trade Agreements on Trade in Agrifood Products: Evidence from Gravity Modeling Using Disaggregated Data

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  • Sampath Jayasinghe
  • Rakhal Sarker

Abstract

The recent proliferation of regional trade agreements (RTAs) has intensified the debate on their merits. This study contributes to this debate by analyzing trade creation and diversion effects of the North American Free Trade Agreement (NAFTA) on trade in six important agrifood products. An extended gravity model is estimated using pooled data and generalized least squares methods. The result shows that the share of intraregional trade is growing within NAFTA and that NAFTA has displaced trade with the rest of the world. While NAFTA has served to boost trade among its members, it reduced the degree of openness to trade with nonmembers. Copyright 2008, Oxford University Press.

Suggested Citation

  • Sampath Jayasinghe & Rakhal Sarker, 2008. "Effects of Regional Trade Agreements on Trade in Agrifood Products: Evidence from Gravity Modeling Using Disaggregated Data," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 61-81.
  • Handle: RePEc:oup:revage:v:30:y:2008:i:1:p:61-81
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2007.00392.x
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    Citations

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    Cited by:

    1. Thomas L. Vollrath & Mark J. Gehlhar & Charles B. Hallahan, 2009. "Bilateral Import Protection, Free Trade Agreements, and Other Factors Influencing Trade Flows in Agriculture and Clothing," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 298-317.
    2. repec:eco:journ1:2017-06-7 is not listed on IDEAS
    3. Lee, Youngjae & Kennedy, Lynn, 2016. "Determining the Effect of NAFTA on the North American Sweet Potato Market," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235429, Agricultural and Applied Economics Association.
    4. Pascal L. Ghazalian & Bruno Larue & Jean-Philippe Gervais, 2009. "Exporting to new destinations and the effects of tariffs: the case of meat commodities," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 701-714, November.
    5. Natale, Fabrizio & Borrello, Alessandra & Motova, Arina, 2015. "Analysis of the determinants of international seafood trade using a gravity model," Marine Policy, Elsevier, vol. 60(C), pages 98-106.
    6. Marilyne Huchet Bourdon & Chantal Le Mouël & Mindourewa Peketi, 2016. "The impact of regional trade agreements on agrifood trade flows: The role of rules of origin," Working Papers SMART - LERECO 16-08, INRA UMR SMART-LERECO.
    7. Ülengin, Füsun & Çekyay, Bora & Toktaş Palut, Peral & Ülengin, Burç & Kabak, Özgür & Özaydın, Özay & Önsel Ekici, Şule, 2015. "Effects of quotas on Turkish foreign trade: A gravity model," Transport Policy, Elsevier, vol. 38(C), pages 1-7.

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