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Are Free Trade Agreements Contagious?

Listed author(s):
  • Richard Baldwin
  • Dany Jaimovich

This paper presents a new model of the domino effect which is used to generate an empirical index of how "contagious" FTAs are with respect to third nations. We test our contagion hypothesis together with alternative specifications of interdependence and other political, economical and geographical determinants of FTA formation. Our main finding is that contagion is present in our data and is robust to various econometric specifications and samples.

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File URL: http://www.nber.org/papers/w16084.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16084.

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Date of creation: Jun 2010
Publication status: published as “Are Free Trade Agreements Contagious?”, with Dany Jaimovich, Journal of International Economics, Volume 88, Issue 1, September 2012, Pages 1–16.
Handle: RePEc:nbr:nberwo:16084
Note: ITI
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  42. Pédussel Wu, Jennifer, 2004. "Measuring and explaining levels of regional economic integration," ZEI Working Papers B 12-2004, University of Bonn, ZEI - Center for European Integration Studies.
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  47. Levy, Philip I, 1997. "A Political-Economic Analysis of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 87(4), pages 506-519, September.
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  52. Neal, Larry & Barbezat, Daniel, 1998. "The Economics of the European Union and the Economies of Europe," OUP Catalogue, Oxford University Press, number 9780195110685, December.
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