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Greater than the Sum of its Parts? How does Austria Profit from a Widening Network of EU Free Trade Agreements?

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  • Julia Grübler
  • Oliver Reiter

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

Political debates and economic analyses often focus on single free trade agreements and their potential economic effects on participating trading partners. This study contributes to the literature by shedding light on the significance of trade agreements in the context of countries’ positions in worldwide trade agreement networks, by combining network theory with gravity trade modelling. We illustrate, both numerically and graphically, the evolution of the global web of trade agreements in general, and the network of the European Union specifically, accounting for the geographical and temporal change in the depth of agreements implemented. Gravity estimations for the period 1995-2017 distinguish the direct bilateral effects of trade agreements from indirect effects attributable to the scope of trade networks and countries’ positions therein.

Suggested Citation

  • Julia Grübler & Oliver Reiter, 2020. "Greater than the Sum of its Parts? How does Austria Profit from a Widening Network of EU Free Trade Agreements?," wiiw Working Papers 186, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:186
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    Cited by:

    1. Franz Sinabell & Julia Grübler & Oliver Reiter, 2020. "Implications of the EU-Mercosur Association Agreement for Austria - A Preliminary Assess," FIW Research Reports series VII-003, FIW.
    2. Chessa, Michela & Persenda, Arnaud & Torre, Dominique, 2023. "Brexit and Canadadvent: An application of graphs and hypergraphs to recent international trade agreements," International Economics, Elsevier, vol. 175(C), pages 1-12.
    3. Franz Sinabell & Julia Grübler & Oliver Reiter, 2020. "Implications of the EU-Mercosur Association Agreement for Austria - A Preliminary Assess," FIW Research Reports series VII-003, FIW.
    4. Franz Sinabell & Julia Grübler & Oliver Reiter, 2020. "Implications of the EU-Mercosur Association Agreement for Austria. A Preliminary Assessment," WIFO Studies, WIFO, number 66364, Juni.

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    More about this item

    Keywords

    Free trade agreements; network effects; trade policy; structural gravity model;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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