1 option
Does it matter who you sign with? : Comparing the impacts of north-south and south-south trade agreements on bilateral trade / Alberto Behar
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Behar, Alberto
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Bilateral Trade.
- Economic Theory & Research.
- Emerging Markets.
- Free Trade.
- Free Trade Agreements.
- International Economics & Trade.
- Multilateral Resistance.
- North-South Trade Agreements.
- South-South Trade Agreements.
- Trade Law.
- Trade Policy.
- Local Subjects:
- Bilateral Trade.
- Economic Theory & Research.
- Emerging Markets.
- Free Trade.
- Free Trade Agreements.
- International Economics & Trade.
- Multilateral Resistance.
- North-South Trade Agreements.
- South-South Trade Agreements.
- Trade Law.
- Trade Policy.
- Physical Description:
- 1 online resource (23 pages)
- Other Title:
- Does it matter who you sign with?
- Place of Publication:
- Washington, D.C., The World Bank, 2011
- System Details:
- data file
- Summary:
- Free trade agreements lead to a rise in bilateral trade regardless of whether the signatories are developed or developing countries. Furthermore, the percentage increase in bilateral trade is higher for South-South agreements than for North-South agreements. In this paper, the results are robust across a number of gravity model specifications in which the analysis controls for the endogeneity of free trade agreements (with bilateral fixed effects) and also takes account of multilateral resistance in both estimation (with country-time fixed effects) and comparative statics (analytically). The analytical model shows that multilateral resistance dampens the impact of free trade agreements on trade by less in South-South agreements than in North-South agreements, which accentuates the difference implied by the gravity model coefficients, and that this difference gets larger as the number of signatories rises. For example, allowing for lags and multilateral resistance, a four-country North-South agreement raises bilateral trade by 53 percent while the analogous South-South impact is 107 percent.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.