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Preferential Trade Agreements and the Structure of International Trade

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In this paper we examine the impact of membership in Preferential Trade Agreements (PTAs) on trade between PTA members. Rather than considering the impact of PTA membership on the volume of trade we consider the impact of membership on the structure of trade. For a large sample of countries over the period 1962-2000 we find that membership in a PTA is associated with an increase in the extent of intra-industry trade. In addition, we find that the effect of PTA membership on IIT is larger when a PTA is formed between two developed countries.

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  • Neil Foster-McGregor & Robert Stehrer, 2010. "Preferential Trade Agreements and the Structure of International Trade," wiiw Working Papers 61, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:wpaper:61
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    Cited by:

    1. Alexandra Ferreira-Lopes & Ccndida Sousa & Helena Carvalho & Nuno Crespo, 2017. "Trade Protectionism and Intra-industry Trade: A USA - EU Comparison," Research in World Economy, Research in World Economy, Sciedu Press, vol. 8(2), pages 88-102, December.
    2. United Nations ESCAP (ed.), 2011. "Asia-Pacific Trade and Investment Report 2011: Post-crisis trade and investment opportunities," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number aptir2596.
    3. Justyna Lapinska, 2016. "Determinant Factors Of Intra-Industry Trade: The Case Of Poland And Its European Union Trading Partners," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(2), pages 251-264, June.
    4. Orszaghova, Lucia & Schudel, Willem & Dautovic, Ernest, 2014. "Intra-industry trade between CESEE countries and the EU15," Working Paper Series 1719, European Central Bank.
    5. repec:bla:etrans:v:25:y:2017:i:4:p:625-662 is not listed on IDEAS
    6. Tristan Kohl, 2014. "Do we really know that trade agreements increase trade?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 443-469, August.
    7. repec:eee:jeeman:v:83:y:2017:i:c:p:50-67 is not listed on IDEAS
    8. Neil Foster, 2012. "Preferential Trade Agreements and the Margins of Imports," Open Economies Review, Springer, vol. 23(5), pages 869-889, November.
    9. Valentina Raimondi & Margherita Scoppola & Alessandro Olper, 2012. "Preference erosion and the developing countries exports to the EU: a dynamic panel gravity approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(4), pages 707-732, December.
    10. Roy, Jayjit, 2017. "On the environmental consequences of intra-industry trade," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 50-67.

    More about this item

    Keywords

    Preferential Trade Agreements; intra-industry trade; gravity equation;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

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