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Economic geography in the presence of preferential trade agreements: an empirical analysis of OECD data

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  • Jung Hur
  • Donghyun Park
  • Joseph Alba

Abstract

In the presence of preferential trade agreements (PTAs), there are two distinct levels of economic geography-global economic geography (GEG) between a PTA bloc and the world and local economic geography (LEG) between a PTA member and its PTA bloc. Using OECD data, we empirically examine whether both types of economic geography can help to explain the international production structure. Our findings provide some support for the importance of distinguishing between LEG and GEG when testing for the presence of economic geography.

Suggested Citation

  • Jung Hur & Donghyun Park & Joseph Alba, 2008. "Economic geography in the presence of preferential trade agreements: an empirical analysis of OECD data," Applied Economics, Taylor & Francis Journals, vol. 40(8), pages 1031-1041.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1031-1041
    DOI: 10.1080/00036840600771213
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    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LLC, vol. 3(1), pages 1-31, March.
    2. Donald R. Davis & David E. Weinstein, 1996. "Does Economic Geography Matter for International Specialization?," Harvard Institute of Economic Research Working Papers 1773, Harvard - Institute of Economic Research.
    3. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, Decembrie.
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    Cited by:

    1. Zhaobin Fan & Ruimin Bian & Hui Li, 2024. "The Impact of High‐standard Free Trade Areas on the Diversification of China's Export Products: Expanding Market or Intensifying Competition?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 32(4), pages 33-67, July.

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