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Free Trade Agreements and World Obesity

Author

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  • Michele Baggio

    (Department of Economics, University of Connecticut, USA)

  • Alberto Chong

    (Department of Economics, Georgia State University, USA)

Abstract

We study the causal link between trade openness via free trade agreements and obesity rates. We apply a difference-in-differences approach and exploit the year a country entered a free trade agreement with the United States during the period 1990 to 2016. We find statistically and economically significant results and show that our findings are robust to placebo tests, the use of synthetic control methods, and mechanically maximizing the sample. Additionally, we show that when using event studies the equal trends assumption holds.

Suggested Citation

  • Michele Baggio & Alberto Chong, 2019. "Free Trade Agreements and World Obesity," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1914, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper1914
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    References listed on IDEAS

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    1. David M. Cutler & Edward L. Glaeser & Jesse M. Shapiro, 2003. "Why Have Americans Become More Obese?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 93-118, Summer.
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    3. Offer, Avner & Pechey, Rachel & Ulijaszek, Stanley, 2010. "Obesity under affluence varies by welfare regimes: The effect of fast food, insecurity, and inequality," Economics & Human Biology, Elsevier, vol. 8(3), pages 297-308, December.
    4. repec:wly:soecon:v:82:4:y:2016:p:1266-1310 is not listed on IDEAS
    5. McGrady,Benn, 2011. "Trade and Public Health," Cambridge Books, Cambridge University Press, number 9781107008410, October.
    6. Offer, Avner & Pechey, Rachel & Ulijaszek, Stanley, 2010. "Obesity under affluence varies by welfare regimes: The effect of fast food, insecurity, and inequality," Economics & Human Biology, Elsevier, vol. 8(3), pages 297-308, December.
    7. Barlow, Pepita & McKee, Martin & Basu, Sanjay & Stuckler, David, 2017. "Impact of the North American free trade agreement on high-fructose corn syrup supply in Canada: a natural experiment using synthetic control methods," LSE Research Online Documents on Economics 102665, London School of Economics and Political Science, LSE Library.
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    10. Indra de Soysa & Ann Kristin de Soysa, 2018. "Do Globalization and Free Markets Drive Obesity among Children and Youth? An Empirical Analysis, 1990–2013," International Interactions, Taylor & Francis Journals, vol. 44(1), pages 88-106, January.
    11. Courtemanche, Charles & Carden, Art, 2011. "Supersizing supercenters? The impact of Walmart Supercenters on body mass index and obesity," Journal of Urban Economics, Elsevier, vol. 69(2), pages 165-181, March.
    12. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    13. Goryakin, Yevgeniy & Lobstein, Tim & James, W. Philip T. & Suhrcke, Marc, 2015. "The impact of economic, political and social globalization on overweight and obesity in the 56 low and middle income countries," Social Science & Medicine, Elsevier, vol. 133(C), pages 67-76.
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    Cited by:

    1. Cáceres Bustamante, Javiera & López Giral, Dorotea & Muñoz Navia, Felipe, 2022. "The Chile-Republic of Korea Free Trade Agreement: a synthetic control assessment," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Gilbert, Rachel & Costlow, Leah & Matteson, Julia & Rauschendorfer, Jakob & Krivonos, Ekaterina & Block, Steven A. & Masters, William A., 2024. "Trade policy reform, retail food prices and access to healthy diets worldwide," World Development, Elsevier, vol. 177(C).
    3. Adu, Derick T. & Li, Wenying & Sawadgo, Wendiam P.M., 2023. "Estimating the unintended impact of the North American free trade agreement on U.S. public health," Social Science & Medicine, Elsevier, vol. 333(C).

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