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Hub-and-Spokes Free-Trade-Agreements in the Presence of Technology Spillovers: An Application to the Western Hemisphere

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  • Das, Gouranga Gopal
  • Andriamananjara, Soamiely

Abstract

Using a comparative-static general equilibrium model and in the context of the western hemisphere, this paper compares the economic effects of a "hub-and-spokes (HAS)" type of bilateral trade configuration (with Chile being the hub) with those of a more comprehensive regional FTA (namely, the FTAA). The model is augmented to account for the possibility of technology spillovers and its effective assimilation among participating economies. In particular, absorptive capacity, governance factor, proximity and socio-institutional congruence conjointly determine an economy's capacity to capture the technology that is transmitted from developed spoke US to other regions.

Suggested Citation

  • Das, Gouranga Gopal & Andriamananjara, Soamiely, 2004. "Hub-and-Spokes Free-Trade-Agreements in the Presence of Technology Spillovers: An Application to the Western Hemisphere," Working Papers 15870, United States International Trade Commission, Office of Economics.
  • Handle: RePEc:ags:uitcoe:15870
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Parrado, Ramiro & De Cian, Enrica, 2014. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," Energy Economics, Elsevier, vol. 41(C), pages 76-89.
    2. Maria Chiara Di Guardo & Emanuela Marrocu & Raffaele Paci, 2016. "The Concurrent Impact of Cultural, Political, and Spatial Distances on International Mergers and Acquisitions," The World Economy, Wiley Blackwell, vol. 39(6), pages 824-852, June.
    3. Soo Yuen Chong & Jung Hur, 2007. "Overlapping Free Trade Agreements of Singapore-USA-Japan : A Computational Analysis," Trade Working Papers 21931, East Asian Bureau of Economic Research.
    4. Argüello C., Ricardo & Valenzuela, Ernesto, 2006. "Market access in the Western Hemisphere: implications for the Andean Community," PERFIL DE COYUNTURA ECONÓMICA, UNIVERSIDAD DE ANTIOQUIA - CIE, July.
    5. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2013. "Do Regional Trade Agreements Enhance International Technology Spillovers?," Discussion papers e-12-010, Graduate School of Economics Project Center, Kyoto University.
    6. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2012. "The Effect of Regional Trade Agreements on Technology Spillovers through International Trade," Discussion papers e-11-006, Graduate School of Economics Project Center, Kyoto University.
    7. Soo Yuen Chong & Jung Hur, 2008. "Small Hubs, Large Spokes and Overlapping Free Trade Agreements," The World Economy, Wiley Blackwell, vol. 31(12), pages 1625-1665, December.
    8. Jinsoo Park, 2015. "Korea’s linkage strategy between FTA hub policy and middle power leadership in regional economic integration," Asia Europe Journal, Springer, vol. 13(4), pages 379-394, December.

    More about this item

    Keywords

    hub and spokes; free trade areas; technology transfer; absorption; governance; welfare; preference dilution; International Relations/Trade; Research and Development/Tech Change/Emerging Technologies; D58; F16; O4;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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