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Not All Agreements Are Equal: Heterogeneus Effects of RTAs on Latin American Agri-Food Exports, 1990-2019

Author

Listed:
  • María-Isabel Ayuda

    (Universidad de Zaragoza, Department of Economic Analysis and Institute of Employment, Digital Society and Sustainability (Spain))

  • Ignacio Belloch

    (Universidad de Zaragoza, Department of Economic Analysis and Institute of Employment, Digital Society and Sustainability (Spain))

  • Vicente Pinilla

    (Universidad de Zaragoza, Department of Applied Economics and Instituto Agroalimentario de Aragón (Spain))

Abstract

Since the final decade of the twentieth century, Latin American countries have increasingly regarded the signing of Regional Trade Agreements (RTAs) as a promising strategy for expanding their exports. Within this context, the main objective of this study is to assess the impact of RTAs on agri-food exports in Latin America over the period 1990–2019, during which such exports experienced significant growth. To this end, our analysis starts with an examination of the various trade agreements signed in the region and the export flows they have progressively channeled. Second, we estimate the effects of each type of agreement on agri-food trade using gravity models and export data from nineteen Latin American countries to their main trading partners (239 in total) between 1990 and 2019. Our main finding regarding the average effect of RTAs is that the estimates are robust to recent developments in gravity modeling. However, when we estimate the effects of each agreement type separately, we find considerable heterogeneity. This variation depends not only on the type of agreement, but also on the export destination region and the period under analysis.

Suggested Citation

  • María-Isabel Ayuda & Ignacio Belloch & Vicente Pinilla, 2025. "Not All Agreements Are Equal: Heterogeneus Effects of RTAs on Latin American Agri-Food Exports, 1990-2019," Documentos de Trabajo (DT-AEHE) 2503, Asociación Española de Historia Económica.
    • Handle: RePEc:ahe:dtaehe:2503
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    References listed on IDEAS

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    1. Richard Baldwin, 2016. "The World Trade Organization and the Future of Multilateralism," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 95-116, Winter.
    2. Mario Larch & Yoto V. Yotov, 2024. "Estimating the effects of trade agreements: Lessons from 60 years of methods and data," The World Economy, Wiley Blackwell, vol. 47(5), pages 1771-1799, May.
    3. I-Hui Cheng & Howard J. Wall, 2005. "Controlling for heterogeneity in gravity models of trade and integration," Review, Federal Reserve Bank of St. Louis, vol. 87(Jan), pages 49-63.
    4. World Bank, 2018. "Results in the Latin America and Caribbean Region 2018, Volume 12," World Bank Publications - Books, The World Bank Group, number 36932, April.
    5. World Bank, 2018. "Results in the Latin America and Caribbean Region 2018, Volume 11," World Bank Publications - Books, The World Bank Group, number 36931, April.
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    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
    • N76 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Latin America; Caribbean
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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