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Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002 / James E. Anderson, Yoto V. Yotov.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Anderson, James E.
Contributor:
National Bureau of Economic Research.
Yotov, Yoto V.
Series:
Working Paper Series (National Bureau of Economic Research) no. w17003.
NBER working paper series no. w17003
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2011.
Summary:
This paper infers the terms of trade effects of Free Trade Agreements (FTA's) with the structural gravity model. Using panel data methods to resolve two way causality between trade and FTA's, we estimate direct FTA effects on bilateral trade volume in 2 digit manufacturing goods from 1990-2002. We deduce the terms of trade changes implied by these volume effects for 40 countries plus a rest-of-the-world aggregate. Some gain over 10%, some lose less than 0.2%. Overall, using a novel measure of the change in iceberg melting, global efficiency rises 0.62%.
Notes:
Print version record
April 2011.

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