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Deep Trade Agreements and Firm Ownership in GVCs

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  • Egger,Peter H.
  • Masllorens,Gerard

Abstract

This paper focuses on the effect of preferential trade agreements and their depth on firmownership, in particular, along global value chains. It measures shareholder-affiliate ownership links at thecountry-sector-pair level to discern between vertical and horizontal links. The findings show that preferential tradeagreements boost vertical international investment links (both backward and forward) while reducing horizontalinvestment. Deep preferential trade agreements stimulate investment particularly for sector pairs, where a high inputspecificity prevails.

Suggested Citation

  • Egger,Peter H. & Masllorens,Gerard, 2023. "Deep Trade Agreements and Firm Ownership in GVCs," Policy Research Working Paper Series 10321, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10321
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    References listed on IDEAS

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