Does It Matter Who You Sign With? Comparing the Impacts of North-South and South-South Trade Agreements on Bilateral Trade
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 a...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110406081055 http://hdl.handle.net/10986/3392 |
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okr-10986-3392 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABSOLUTE VALUE AGGREGATE TRADE AGRICULTURE BARRIERS TO IMPORTS BILATERAL TRADE BLOC TRADE BUSINESS ENVIRONMENT CHANGES IN TRADE COMMODITIES COMMODITY COMMON MARKET COMPARATIVE ADVANTAGE COMPETITION FRAMEWORK COMPETITION POLICY CONSUMERS COST REDUCTIONS COUNTRY DUMMIES CURRENCY CURRENCY UNION CUSTOMS CUSTOMS UNION CUSTOMS UNIONS DATE OF ENTRY INTO FORCE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES ECONOMETRIC ANALYSIS ECONOMIC GEOGRAPHY ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC RELATIONS ECONOMIC SIZE ECONOMIC THEORY ECONOMICS RESEARCH ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION EUROPEAN UNION EXCHANGE RATE EXCHANGE RATE REGIMES EXCHANGE RATES EXPORTS EXTERNAL TARIFF EXTERNAL TARIFFS FACTOR ENDOWMENTS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL SUPPORT FLEXIBLE EXCHANGE RATES FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TRADE AREA FREE TRADE AREAS FREE TRADE ASSOCIATION FREE TRADE ZONES FUTURE RESEARCH GDP GLOBAL ECONOMIC PROSPECTS GLOBAL ECONOMY GLOBAL MARKET GLOBAL TRADE GRAVITY EQUATION GRAVITY MODEL GRAVITY MODELS HARMONIZATION IMPACT OF TRADE INEQUALITY INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERNAL TRADE INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE LIBERALIZATIONS LOW-INCOME COUNTRIES MARKET ACCESS MATURE MARKETS MIDDLE-INCOME COUNTRIES MULTILATERAL TRADE MULTILATERAL TRADE LIBERALIZATION MULTIPLIERS NATIONAL INCOME OPPORTUNITY COST OUTPUT PARTICULAR COUNTRIES POLICY RESEARCH POLITICAL ECONOMY POTENTIAL BENEFITS PREFERENTIAL AGREEMENTS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENT PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADING ARRANGEMENTS PROTECTIONIST REAL GDP RED TAPE REGIONAL AGREEMENTS REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGIONAL TRADE ARRANGEMENTS REGIONALISM REGIONALIZATION RESTRICTIVE RULES OF ORIGIN SIGNATORY COUNTRIES TARIFF SCHEDULES TECHNOLOGY TRANSFER TOTAL FACTOR PRODUCTIVITY TRADE AGREEMENT TRADE AGREEMENTS TRADE BARRIER TRADE BARRIERS TRADE CONCESSIONS TRADE COSTS TRADE CREATION TRADE DIVERSION TRADE EFFECTS TRADE FACILITATION TRADE FLOWS TRADE INTEGRATION TRADE LIBERALIZATION TRADE MORE TRADE PARTNERS TRADE POLICY TRADE POLICY REFORMS TRADE VOLUME TRADE VOLUMES TRADING BLOCS TRADING SYSTEM TRANSFER OF TECHNOLOGY TRANSPORT COSTS UTILITY FUNCTION VOLUME OF TRADE WELFARE GAINS WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION |
| spellingShingle |
ABSOLUTE VALUE AGGREGATE TRADE AGRICULTURE BARRIERS TO IMPORTS BILATERAL TRADE BLOC TRADE BUSINESS ENVIRONMENT CHANGES IN TRADE COMMODITIES COMMODITY COMMON MARKET COMPARATIVE ADVANTAGE COMPETITION FRAMEWORK COMPETITION POLICY CONSUMERS COST REDUCTIONS COUNTRY DUMMIES CURRENCY CURRENCY UNION CUSTOMS CUSTOMS UNION CUSTOMS UNIONS DATE OF ENTRY INTO FORCE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES ECONOMETRIC ANALYSIS ECONOMIC GEOGRAPHY ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC RELATIONS ECONOMIC SIZE ECONOMIC THEORY ECONOMICS RESEARCH ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION EUROPEAN UNION EXCHANGE RATE EXCHANGE RATE REGIMES EXCHANGE RATES EXPORTS EXTERNAL TARIFF EXTERNAL TARIFFS FACTOR ENDOWMENTS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL SUPPORT FLEXIBLE EXCHANGE RATES FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TRADE AREA FREE TRADE AREAS FREE TRADE ASSOCIATION FREE TRADE ZONES FUTURE RESEARCH GDP GLOBAL ECONOMIC PROSPECTS GLOBAL ECONOMY GLOBAL MARKET GLOBAL TRADE GRAVITY EQUATION GRAVITY MODEL GRAVITY MODELS HARMONIZATION IMPACT OF TRADE INEQUALITY INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERNAL TRADE INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE LIBERALIZATIONS LOW-INCOME COUNTRIES MARKET ACCESS MATURE MARKETS MIDDLE-INCOME COUNTRIES MULTILATERAL TRADE MULTILATERAL TRADE LIBERALIZATION MULTIPLIERS NATIONAL INCOME OPPORTUNITY COST OUTPUT PARTICULAR COUNTRIES POLICY RESEARCH POLITICAL ECONOMY POTENTIAL BENEFITS PREFERENTIAL AGREEMENTS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENT PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADING ARRANGEMENTS PROTECTIONIST REAL GDP RED TAPE REGIONAL AGREEMENTS REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGIONAL TRADE ARRANGEMENTS REGIONALISM REGIONALIZATION RESTRICTIVE RULES OF ORIGIN SIGNATORY COUNTRIES TARIFF SCHEDULES TECHNOLOGY TRANSFER TOTAL FACTOR PRODUCTIVITY TRADE AGREEMENT TRADE AGREEMENTS TRADE BARRIER TRADE BARRIERS TRADE CONCESSIONS TRADE COSTS TRADE CREATION TRADE DIVERSION TRADE EFFECTS TRADE FACILITATION TRADE FLOWS TRADE INTEGRATION TRADE LIBERALIZATION TRADE MORE TRADE PARTNERS TRADE POLICY TRADE POLICY REFORMS TRADE VOLUME TRADE VOLUMES TRADING BLOCS TRADING SYSTEM TRANSFER OF TECHNOLOGY TRANSPORT COSTS UTILITY FUNCTION VOLUME OF TRADE WELFARE GAINS WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION Behar, Alberto Cirera i Criville, Laia Does It Matter Who You Sign With? Comparing the Impacts of North-South and South-South Trade Agreements on Bilateral Trade |
| geographic_facet |
The World Region The World Region |
| relation |
Paper is funded by the Knowledge for Change
Program (KCP),Policy Research working paper ; no. WPS 5626 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Behar, Alberto Cirera i Criville, Laia |
| author_facet |
Behar, Alberto Cirera i Criville, Laia |
| author_sort |
Behar, Alberto |
| title |
Does It Matter Who You Sign With? Comparing the Impacts of North-South and South-South Trade Agreements on Bilateral Trade |
| title_short |
Does It Matter Who You Sign With? Comparing the Impacts of North-South and South-South Trade Agreements on Bilateral Trade |
| title_full |
Does It Matter Who You Sign With? Comparing the Impacts of North-South and South-South Trade Agreements on Bilateral Trade |
| title_fullStr |
Does It Matter Who You Sign With? Comparing the Impacts of North-South and South-South Trade Agreements on Bilateral Trade |
| title_full_unstemmed |
Does It Matter Who You Sign With? Comparing the Impacts of North-South and South-South Trade Agreements on Bilateral Trade |
| title_sort |
does it matter who you sign with? comparing the impacts of north-south and south-south trade agreements on bilateral trade |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110406081055 http://hdl.handle.net/10986/3392 |
| _version_ |
1764386910053072896 |
| spelling |
okr-10986-33922021-04-23T14:02:09Z Does It Matter Who You Sign With? Comparing the Impacts of North-South and South-South Trade Agreements on Bilateral Trade Behar, Alberto Cirera i Criville, Laia ABSOLUTE VALUE AGGREGATE TRADE AGRICULTURE BARRIERS TO IMPORTS BILATERAL TRADE BLOC TRADE BUSINESS ENVIRONMENT CHANGES IN TRADE COMMODITIES COMMODITY COMMON MARKET COMPARATIVE ADVANTAGE COMPETITION FRAMEWORK COMPETITION POLICY CONSUMERS COST REDUCTIONS COUNTRY DUMMIES CURRENCY CURRENCY UNION CUSTOMS CUSTOMS UNION CUSTOMS UNIONS DATE OF ENTRY INTO FORCE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES ECONOMETRIC ANALYSIS ECONOMIC GEOGRAPHY ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC RELATIONS ECONOMIC SIZE ECONOMIC THEORY ECONOMICS RESEARCH ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION EUROPEAN UNION EXCHANGE RATE EXCHANGE RATE REGIMES EXCHANGE RATES EXPORTS EXTERNAL TARIFF EXTERNAL TARIFFS FACTOR ENDOWMENTS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL SUPPORT FLEXIBLE EXCHANGE RATES FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TRADE AREA FREE TRADE AREAS FREE TRADE ASSOCIATION FREE TRADE ZONES FUTURE RESEARCH GDP GLOBAL ECONOMIC PROSPECTS GLOBAL ECONOMY GLOBAL MARKET GLOBAL TRADE GRAVITY EQUATION GRAVITY MODEL GRAVITY MODELS HARMONIZATION IMPACT OF TRADE INEQUALITY INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERNAL TRADE INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE LIBERALIZATIONS LOW-INCOME COUNTRIES MARKET ACCESS MATURE MARKETS MIDDLE-INCOME COUNTRIES MULTILATERAL TRADE MULTILATERAL TRADE LIBERALIZATION MULTIPLIERS NATIONAL INCOME OPPORTUNITY COST OUTPUT PARTICULAR COUNTRIES POLICY RESEARCH POLITICAL ECONOMY POTENTIAL BENEFITS PREFERENTIAL AGREEMENTS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENT PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADING ARRANGEMENTS PROTECTIONIST REAL GDP RED TAPE REGIONAL AGREEMENTS REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGIONAL TRADE ARRANGEMENTS REGIONALISM REGIONALIZATION RESTRICTIVE RULES OF ORIGIN SIGNATORY COUNTRIES TARIFF SCHEDULES TECHNOLOGY TRANSFER TOTAL FACTOR PRODUCTIVITY TRADE AGREEMENT TRADE AGREEMENTS TRADE BARRIER TRADE BARRIERS TRADE CONCESSIONS TRADE COSTS TRADE CREATION TRADE DIVERSION TRADE EFFECTS TRADE FACILITATION TRADE FLOWS TRADE INTEGRATION TRADE LIBERALIZATION TRADE MORE TRADE PARTNERS TRADE POLICY TRADE POLICY REFORMS TRADE VOLUME TRADE VOLUMES TRADING BLOCS TRADING SYSTEM TRANSFER OF TECHNOLOGY TRANSPORT COSTS UTILITY FUNCTION VOLUME OF TRADE WELFARE GAINS WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION 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. 2012-03-19T18:01:39Z 2012-03-19T18:01:39Z 2011-04-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110406081055 http://hdl.handle.net/10986/3392 English Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5626 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |