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Terms-of-Trade Impacts of Trade Agreements and the Choice of Trade Policy

Listed author(s):
  • Joachim Jarreau

    ()

    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

This paper studies the impacts and determinants of trade policy. I use data on applied tariff protection of world countries over 2001-2007 to estimate sector-level trade elasticities. I then calibrate a structural gravity model of world trade. I compute the impacts of trade agreements which were implemented and of those which were not. I find that expected real income gains predict the signing of PTAs. Decomposing these gains shows that domestic mill price increases, reflecting market access gains, have a larger impact than the impact on the consumer price index. I also find that larger expected gains from multilateral liberalization reduce the probability to engage in preferential agreements.

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File URL: http://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2014_-_nr_30.pdf#overlay-context=fr/recherche/documents-de-travail/terms-trade-impacts-trade-agreements-and-choice-trade-policy
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Paper provided by Aix-Marseille School of Economics, Marseille, France in its series AMSE Working Papers with number 1430.

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Length: 40 pages
Date of creation: 11 Jul 2014
Date of revision: 11 Jul 2014
Handle: RePEc:aim:wpaimx:1430
Contact details of provider: Web page: http://www.amse-aixmarseille.fr/en

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