Evaluating the Trade Effect of Developing Regional Trade Agreements : A Semi-parametric Approach

Many recent papers have pointed to ambiguous trade effects of developing regional trade agreements, calling for a reassessment of their economic merits. This paper focuses on 22 RTAs involving mostly developing countries and covering all the continents and use trade flows over the period 1962-2006....

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Main Author:	Coulibaly, Souleymane
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Economic Integration F150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240
Online Access:	http://hdl.handle.net/10986/5550

id	okr-10986-5550
recordtype	oai_dc
spelling	okr-10986-55502021-04-23T14:02:22Z Evaluating the Trade Effect of Developing Regional Trade Agreements : A Semi-parametric Approach Coulibaly, Souleymane Economic Integration F150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 Many recent papers have pointed to ambiguous trade effects of developing regional trade agreements, calling for a reassessment of their economic merits. This paper focuses on 22 RTAs involving mostly developing countries and covering all the continents and use trade flows over the period 1962-2006. It proposes a two-step estimation approach to assess their trade impact: first estimate a gravity equation excluding the RTA variables, and then use the trade residuals estimated to run a kernel regression for each of the RTAs. This approach allows capturing the non-monotonic trade effects of the RTAs over time while imposing minimal structure on the model, and is flexible enough to be extended to any new RTA. As existing RTAs are deepened and new ones are being negotiated, ensuring that trade creation dominates trade diversion will be essential, particularly in the post-crisis world where resources will be limited for all countries. 2012-03-30T07:33:22Z 2012-03-30T07:33:22Z 2009 Journal Article Journal of Economic Integration 1225651X http://hdl.handle.net/10986/5550 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Economic Integration F150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240
spellingShingle	Economic Integration F150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 Coulibaly, Souleymane Evaluating the Trade Effect of Developing Regional Trade Agreements : A Semi-parametric Approach
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Many recent papers have pointed to ambiguous trade effects of developing regional trade agreements, calling for a reassessment of their economic merits. This paper focuses on 22 RTAs involving mostly developing countries and covering all the continents and use trade flows over the period 1962-2006. It proposes a two-step estimation approach to assess their trade impact: first estimate a gravity equation excluding the RTA variables, and then use the trade residuals estimated to run a kernel regression for each of the RTAs. This approach allows capturing the non-monotonic trade effects of the RTAs over time while imposing minimal structure on the model, and is flexible enough to be extended to any new RTA. As existing RTAs are deepened and new ones are being negotiated, ensuring that trade creation dominates trade diversion will be essential, particularly in the post-crisis world where resources will be limited for all countries.
format	Journal Article
author	Coulibaly, Souleymane
author_facet	Coulibaly, Souleymane
author_sort	Coulibaly, Souleymane
title	Evaluating the Trade Effect of Developing Regional Trade Agreements : A Semi-parametric Approach
title_short	Evaluating the Trade Effect of Developing Regional Trade Agreements : A Semi-parametric Approach
title_full	Evaluating the Trade Effect of Developing Regional Trade Agreements : A Semi-parametric Approach
title_fullStr	Evaluating the Trade Effect of Developing Regional Trade Agreements : A Semi-parametric Approach
title_full_unstemmed	Evaluating the Trade Effect of Developing Regional Trade Agreements : A Semi-parametric Approach
title_sort	evaluating the trade effect of developing regional trade agreements : a semi-parametric approach
publishDate	2012
url	http://hdl.handle.net/10986/5550
_version_	1764395452597272576

Evaluating the Trade Effect of Developing Regional Trade Agreements : A Semi-parametric Approach

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