Trade Integration and the Fragility of Trade Relationships: A Product Level Perspective
We investigate the effect of economic integration agreements on the stability of international trade at the 4 digit SITC level. Using annual trade data for over 180 countries from 1962 to 2005 we examine how economic integration agreements affect the length of trade relationships, the volume at the start of new trade relationships, and how quickly trade grows within a relationship. We find evidence of an interesting dichotomy which highlights the relevance of transaction costs for exports. While economic integration increases the length of trade relationships which started prior to the agreement, it reduces the length of those started after the agreement. Similarly, economic integration increases the growth rate of relationships which started prior to the agreement, but decreases the growth rate of those that started after the agreement. With respect to starting size of trade relationships, economic integration lowers initial transaction volumes.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.socialpolitik.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Céline CARRERE & Vanessa STRAUSS-KAHN, 2012.
"Exports Dynamics: Raising Developing Countries Exports Survival through Experience,"
- Céline CARRERE & Vanessa STRAUSS-KAHN, 2012. "Exports Dynamics: Raising Developing Countries Exports Survival through Experience," Working Papers P35-A, FERDI.
- Olivier Cadot & Leonardo Iacovone & Denisse Pierola & Ferdinand Rauch, 2011.
"Success and Failure of African Exporters,"
CEP Discussion Papers
dp1054, Centre for Economic Performance, LSE.
- Besedes, Tibor & Prusa, Thomas J., 2011.
"The role of extensive and intensive margins and export growth,"
Journal of Development Economics,
Elsevier, vol. 96(2), pages 371-379, November.
- Tibor Besedes & Thomas J. Prusa, 2007. "The Role of Extensive and Intensive Margins and Export Growth," NBER Working Papers 13628, National Bureau of Economic Research, Inc.
- Anderson, James E. & Yotov, Yoto V., 2016.
"Terms of trade and global efficiency effects of free trade agreements, 1990–2002,"
Journal of International Economics,
Elsevier, vol. 99(C), pages 279-298.
- Anderson, James & Yotov, Yoto, 2012. "Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002," School of Economics Working Paper Series 2012-3, LeBow College of Business, Drexel University.
- James E. Anderson & Yoto V. Yotov, 2011. "Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002," NBER Working Papers 17003, National Bureau of Economic Research, Inc.
- James E. Anderson & Yoto V. Yotov, 2011. "Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002," Boston College Working Papers in Economics 780, Boston College Department of Economics, revised 11 Oct 2011.
- Sueyoshi, Glenn T, 1995. "A Class of Binary Response Models for Grouped Duration Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 411-31, Oct.-Dec..
- Mélise Jaud & Madina Kukenova & Martin Strieborny, 2009. "Financial dependence and intensive margin of trade," PSE Working Papers halshs-00575005, HAL.
- Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, vol. 43(3), pages 1083-1107, December.
- Dick Nuwamanya Kamuganga, 2012. "In this paper, I use a stratified Cox Proportional Hazard Model to econometrically evaluate the effects of intra-Africa regional trade cooperation and other underlying factors on Africa`s export survi," IHEID Working Papers 16-2012, Economics Section, The Graduate Institute of International Studies.
- Carrere, Celine, 2006. "Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model," European Economic Review, Elsevier, vol. 50(2), pages 223-247, February.
When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc13:79977. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.