The Uneven Roles of FTAs: Selection Effect or "Learning" Effect?
Previous studies on the role of FTAs in promoting members' international trade have usually focused on FTA premium, ignoring the difference between selection effects - trade developments before the formation of FTAs - and "learning" effects - trade growth after the formation of FTAs. This paper considers this difference, using a large bilateral trade panel comprising data covering more than 50 years from 178 countries. SouthÂ–South FTAs and NorthÂ–South FTAs are most related to the selection effect while NorthÂ–North FTAs have a significant "learning" effect.
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