Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002
This paper infers the terms of trade effects of the Free Trade Agreements (FTAs) of the 1990s. Using panel data methods to resolve two way causality between trade and FTAs, we estimate large FTA effects on bilateral trade volume in digit manufacturing goods from 1990-2002. We deduce the terms of trade changes implied by these volume effects for 40 countries plus a rest-of-the-world aggregate using the structural gravity model. Some countries gain over 10%, some lose less than 0.2%. Overall, using a novel measure of the change in iceberg melting,global efficiency rises 0.62%
|Date of creation:||30 Apr 2012|
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|Contact details of provider:|| Web page: http://www.lebow.drexel.edu/|
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