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The Uneven Roles of FTAs: Selection Effect or "Learning" Effect?

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  • Faqin Lin

    () (School of Economics, University of Adelaide)

Abstract

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. South–South FTAs and North–South FTAs are most related to the selection effect while North–North FTAs have a significant "learning" effect.

Suggested Citation

  • Faqin Lin, 2010. "The Uneven Roles of FTAs: Selection Effect or "Learning" Effect?," School of Economics Working Papers 2010-19, University of Adelaide, School of Economics.
  • Handle: RePEc:adl:wpaper:2010-19
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    File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2010-19.pdf
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    More about this item

    Keywords

    Free trade agreements; selection effect; learning effect;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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