Preferential Trade Liberalization and the Range of Exported Products: The Case of the Euro-Mediterranean FTA
The paper investigates how Preferential Trade Agreements (PTAs) affect the range of goods exported by a nation. We use the Melitz model and highly dis-aggregated data on Euro-Mediterranean trade to measure the effect of preferential trade liberalization on the range of traded products. By focusing on the zeros in the trade matrix, the paper finds evidence that at the time when the Euro-Mediterranean FTA started there was an expansion in the range of products traded by its members.
|Date of creation:||09 Oct 2006|
|Date of revision:|
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- repec:rus:hseeco:122439 is not listed on IDEAS
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3229098, Harvard University Department of Economics.
- Elhanan Helpman & Paul Krugman, 1987. "Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 026258087x, June.
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