Beyond Trade : The Impact of Preferential Trade Agreements on Foreign Direct Investment Inflows

The author investigates the effects of preferential trade agreements (PTAs) on the net foreign direct investment (FDI) inflows of member countries using a comprehensive database of PTAs in a panel setting. He finds that PTA membership is associated with a positive change in net FDI inflows, and the...

Full description

Bibliographic Details
Main Author: Medvedev, Denis
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2012
Subjects:
FDI
GDP
MNE
Online Access:http://documents.worldbank.org/curated/en/2006/11/7191052/beyond-trade-impact-preferential-trade-agreements-foreign-direct-investment-inflows
http://hdl.handle.net/10986/8868
id okr-10986-8868
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESSION AGREEMENTS
ACCESSION COUNTRIES
AGGREGATE TRADE
AVERAGE TARIFF
AVERAGE TARIFF RATES
AVERAGE TARIFFS
BILATERAL INVESTMENT
BUDGET CONSTRAINTS
CAPITAL FLOWS
CHANGES IN TRADE
COMMON MARKET
COMPETITION DISCIPLINES
COMPETITION POLICY
COMPETITION RULES
COMPETITIVE PRESSURES
CROSS-BORDER FINANCIAL FLOWS
CROSS-COUNTRY ANALYSES
CROSS-COUNTRY REGRESSIONS
CUSTOMS
CUSTOMS UNION
DEVELOPING NATIONS
DIRECT INVESTMENT INFLOWS
DISPUTE SETTLEMENT
DISPUTE SETTLEMENT MECHANISMS
DOMESTIC FIRMS
ECONOMIC GROWTH
ECONOMIC INTEGRATION
ECONOMIES OF SCALE
ELASTICITY
ELIMINATING TARIFFS
EXCHANGE RATE
EXPORTERS
EXPORTS
EXTENDED MARKET
EXTERNAL PROTECTION
EXTERNAL TARIFF
FDI
FINANCIAL MARKETS
FINANCIAL SERVICES
FIRM SIZE
FOREIGN COUNTRY
FOREIGN DIRECT INVESTMENT
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOREIGN MARKETS
FOREIGN OWNERSHIP
FOREIGN OWNERSHIP RESTRICTIONS
FOREIGN SUBSIDIARIES
FREE TRADE
FREE TRADE AGREEMENT
FREE TRADE AGREEMENTS
FREE TRADE AREA
GDP
GENERAL EQUILIBRIUM MODEL
GEOGRAPHIC PROXIMITY
GLOBAL FREE TRADE
GLOBAL LEVEL
GRANGER CAUSALITY
GRAVITY MODEL
GROWTH POTENTIAL
GROWTH RATE
GROWTH RATES
HARMONIZATION
HOST COUNTRIES
HOST COUNTRY
HOST ECONOMY
IMPORTED GOODS
INCOME
INCOME LEVELS
INDUSTRIALIZATION
INDUSTRIALIZED COUNTRIES
INDUSTRY TRADE
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTERNAL MARKET
INTERNATIONAL CAPITAL
INTERNATIONAL TRADE
INVESTMENT CLIMATE
INVESTMENT CREATION
INVESTMENT FLOWS
INVESTMENT INFLOWS
INVESTMENT LIBERALIZATION
INVESTMENT PROVISIONS
INVESTOR CONFIDENCE
LIBERALIZATION COMMITMENTS
LOCAL CONTENT
MACROECONOMIC STABILITY
MACROECONOMIC STABILIZATION
MARGINAL EFFECT
MARKET ACCESS
MARKET POWER
MARKET SIZE
MARKET SIZE EFFECTS
MEMBER COUNTRIES
MERCHANDISE TRADE
MERGERS
MFN TARIFFS
MIDDLE EASTERN
MNE
MNES
MULTINATIONAL ENTERPRISES
MUTUAL RECOGNITION
MUTUAL RECOGNITION OF STANDARDS
NATIONAL MARKETS
NATIONAL TREATMENT
NEIGHBORING COUNTRIES
NON-TARIFF BARRIERS
OPEN ECONOMIES
OPENNESS
POLICY REFORMS
POLICY RESEARCH
POLITICAL RISK
PREFERENTIAL ACCESS
PREFERENTIAL AGREEMENT
PREFERENTIAL AGREEMENTS
PREFERENTIAL LIBERALIZATION
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PREFERENTIAL TRADE LIBERALIZATION
PRODUCTION PROCESS
PRODUCTION STRUCTURE
REDUCTION OF BARRIERS
REGIONAL AGREEMENTS
REGIONAL INTEGRATION
REGIONAL TRADE
REGIONAL TRADE AGREEMENTS
REGIONALISM
RULES OF ORIGIN
SCALE ECONOMIES
SHALLOW INTEGRATION
TARIFF BARRIERS
TARIFF LEVELS
TARIFF LINES
TARIFF RATES
TECHNOLOGY SPILLOVERS
TELECOMMUNICATIONS
TRADE AGREEMENT
TRADE BALANCE
TRADE BARRIERS
TRADE CREATING
TRADE CREATION
TRADE DIVERSION
TRADE FLOWS
TRADE INTENSITY
TRADE MORE
TRADE OPENNESS
TRADE POLICY
TRADE POLICY VARIABLES
TRADE THEORY
TRADE VOLUMES
TRADING PARTNERS
UNILATERAL LIBERALIZATION
WORLD TRADE
spellingShingle ACCESSION AGREEMENTS
ACCESSION COUNTRIES
AGGREGATE TRADE
AVERAGE TARIFF
AVERAGE TARIFF RATES
AVERAGE TARIFFS
BILATERAL INVESTMENT
BUDGET CONSTRAINTS
CAPITAL FLOWS
CHANGES IN TRADE
COMMON MARKET
COMPETITION DISCIPLINES
COMPETITION POLICY
COMPETITION RULES
COMPETITIVE PRESSURES
CROSS-BORDER FINANCIAL FLOWS
CROSS-COUNTRY ANALYSES
CROSS-COUNTRY REGRESSIONS
CUSTOMS
CUSTOMS UNION
DEVELOPING NATIONS
DIRECT INVESTMENT INFLOWS
DISPUTE SETTLEMENT
DISPUTE SETTLEMENT MECHANISMS
DOMESTIC FIRMS
ECONOMIC GROWTH
ECONOMIC INTEGRATION
ECONOMIES OF SCALE
ELASTICITY
ELIMINATING TARIFFS
EXCHANGE RATE
EXPORTERS
EXPORTS
EXTENDED MARKET
EXTERNAL PROTECTION
EXTERNAL TARIFF
FDI
FINANCIAL MARKETS
FINANCIAL SERVICES
FIRM SIZE
FOREIGN COUNTRY
FOREIGN DIRECT INVESTMENT
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOREIGN MARKETS
FOREIGN OWNERSHIP
FOREIGN OWNERSHIP RESTRICTIONS
FOREIGN SUBSIDIARIES
FREE TRADE
FREE TRADE AGREEMENT
FREE TRADE AGREEMENTS
FREE TRADE AREA
GDP
GENERAL EQUILIBRIUM MODEL
GEOGRAPHIC PROXIMITY
GLOBAL FREE TRADE
GLOBAL LEVEL
GRANGER CAUSALITY
GRAVITY MODEL
GROWTH POTENTIAL
GROWTH RATE
GROWTH RATES
HARMONIZATION
HOST COUNTRIES
HOST COUNTRY
HOST ECONOMY
IMPORTED GOODS
INCOME
INCOME LEVELS
INDUSTRIALIZATION
INDUSTRIALIZED COUNTRIES
INDUSTRY TRADE
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTERNAL MARKET
INTERNATIONAL CAPITAL
INTERNATIONAL TRADE
INVESTMENT CLIMATE
INVESTMENT CREATION
INVESTMENT FLOWS
INVESTMENT INFLOWS
INVESTMENT LIBERALIZATION
INVESTMENT PROVISIONS
INVESTOR CONFIDENCE
LIBERALIZATION COMMITMENTS
LOCAL CONTENT
MACROECONOMIC STABILITY
MACROECONOMIC STABILIZATION
MARGINAL EFFECT
MARKET ACCESS
MARKET POWER
MARKET SIZE
MARKET SIZE EFFECTS
MEMBER COUNTRIES
MERCHANDISE TRADE
MERGERS
MFN TARIFFS
MIDDLE EASTERN
MNE
MNES
MULTINATIONAL ENTERPRISES
MUTUAL RECOGNITION
MUTUAL RECOGNITION OF STANDARDS
NATIONAL MARKETS
NATIONAL TREATMENT
NEIGHBORING COUNTRIES
NON-TARIFF BARRIERS
OPEN ECONOMIES
OPENNESS
POLICY REFORMS
POLICY RESEARCH
POLITICAL RISK
PREFERENTIAL ACCESS
PREFERENTIAL AGREEMENT
PREFERENTIAL AGREEMENTS
PREFERENTIAL LIBERALIZATION
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PREFERENTIAL TRADE LIBERALIZATION
PRODUCTION PROCESS
PRODUCTION STRUCTURE
REDUCTION OF BARRIERS
REGIONAL AGREEMENTS
REGIONAL INTEGRATION
REGIONAL TRADE
REGIONAL TRADE AGREEMENTS
REGIONALISM
RULES OF ORIGIN
SCALE ECONOMIES
SHALLOW INTEGRATION
TARIFF BARRIERS
TARIFF LEVELS
TARIFF LINES
TARIFF RATES
TECHNOLOGY SPILLOVERS
TELECOMMUNICATIONS
TRADE AGREEMENT
TRADE BALANCE
TRADE BARRIERS
TRADE CREATING
TRADE CREATION
TRADE DIVERSION
TRADE FLOWS
TRADE INTENSITY
TRADE MORE
TRADE OPENNESS
TRADE POLICY
TRADE POLICY VARIABLES
TRADE THEORY
TRADE VOLUMES
TRADING PARTNERS
UNILATERAL LIBERALIZATION
WORLD TRADE
Medvedev, Denis
Beyond Trade : The Impact of Preferential Trade Agreements on Foreign Direct Investment Inflows
relation Policy Research Working Paper; No. 4065
description The author investigates the effects of preferential trade agreements (PTAs) on the net foreign direct investment (FDI) inflows of member countries using a comprehensive database of PTAs in a panel setting. He finds that PTA membership is associated with a positive change in net FDI inflows, and the FDI gains are increasing in the market size of the PTA partners and their proximity to the host country. The author identifies several different channels through which preferential trade liberalization may affect FDI, and confirms that both threshold effects (signing the agreement) and market size effects (joining a larger and faster-growing common market) are important determinants of net FDI inflows, although the latter seem to dominate. The estimated relationship is largely driven by North-South PTAs, and is most pronounced in the late 1990s and early 2000s, the period when the majority of "deep integration" PTAs had been advanced.
format Publications & Research :: Policy Research Working Paper
author Medvedev, Denis
author_facet Medvedev, Denis
author_sort Medvedev, Denis
title Beyond Trade : The Impact of Preferential Trade Agreements on Foreign Direct Investment Inflows
title_short Beyond Trade : The Impact of Preferential Trade Agreements on Foreign Direct Investment Inflows
title_full Beyond Trade : The Impact of Preferential Trade Agreements on Foreign Direct Investment Inflows
title_fullStr Beyond Trade : The Impact of Preferential Trade Agreements on Foreign Direct Investment Inflows
title_full_unstemmed Beyond Trade : The Impact of Preferential Trade Agreements on Foreign Direct Investment Inflows
title_sort beyond trade : the impact of preferential trade agreements on foreign direct investment inflows
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2006/11/7191052/beyond-trade-impact-preferential-trade-agreements-foreign-direct-investment-inflows
http://hdl.handle.net/10986/8868
_version_ 1764406687760908288
spelling okr-10986-88682021-04-23T14:02:41Z Beyond Trade : The Impact of Preferential Trade Agreements on Foreign Direct Investment Inflows Medvedev, Denis ACCESSION AGREEMENTS ACCESSION COUNTRIES AGGREGATE TRADE AVERAGE TARIFF AVERAGE TARIFF RATES AVERAGE TARIFFS BILATERAL INVESTMENT BUDGET CONSTRAINTS CAPITAL FLOWS CHANGES IN TRADE COMMON MARKET COMPETITION DISCIPLINES COMPETITION POLICY COMPETITION RULES COMPETITIVE PRESSURES CROSS-BORDER FINANCIAL FLOWS CROSS-COUNTRY ANALYSES CROSS-COUNTRY REGRESSIONS CUSTOMS CUSTOMS UNION DEVELOPING NATIONS DIRECT INVESTMENT INFLOWS DISPUTE SETTLEMENT DISPUTE SETTLEMENT MECHANISMS DOMESTIC FIRMS ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIES OF SCALE ELASTICITY ELIMINATING TARIFFS EXCHANGE RATE EXPORTERS EXPORTS EXTENDED MARKET EXTERNAL PROTECTION EXTERNAL TARIFF FDI FINANCIAL MARKETS FINANCIAL SERVICES FIRM SIZE FOREIGN COUNTRY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN OWNERSHIP FOREIGN OWNERSHIP RESTRICTIONS FOREIGN SUBSIDIARIES FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TRADE AREA GDP GENERAL EQUILIBRIUM MODEL GEOGRAPHIC PROXIMITY GLOBAL FREE TRADE GLOBAL LEVEL GRANGER CAUSALITY GRAVITY MODEL GROWTH POTENTIAL GROWTH RATE GROWTH RATES HARMONIZATION HOST COUNTRIES HOST COUNTRY HOST ECONOMY IMPORTED GOODS INCOME INCOME LEVELS INDUSTRIALIZATION INDUSTRIALIZED COUNTRIES INDUSTRY TRADE INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERNAL MARKET INTERNATIONAL CAPITAL INTERNATIONAL TRADE INVESTMENT CLIMATE INVESTMENT CREATION INVESTMENT FLOWS INVESTMENT INFLOWS INVESTMENT LIBERALIZATION INVESTMENT PROVISIONS INVESTOR CONFIDENCE LIBERALIZATION COMMITMENTS LOCAL CONTENT MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MARGINAL EFFECT MARKET ACCESS MARKET POWER MARKET SIZE MARKET SIZE EFFECTS MEMBER COUNTRIES MERCHANDISE TRADE MERGERS MFN TARIFFS MIDDLE EASTERN MNE MNES MULTINATIONAL ENTERPRISES MUTUAL RECOGNITION MUTUAL RECOGNITION OF STANDARDS NATIONAL MARKETS NATIONAL TREATMENT NEIGHBORING COUNTRIES NON-TARIFF BARRIERS OPEN ECONOMIES OPENNESS POLICY REFORMS POLICY RESEARCH POLITICAL RISK PREFERENTIAL ACCESS PREFERENTIAL AGREEMENT PREFERENTIAL AGREEMENTS PREFERENTIAL LIBERALIZATION PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADE LIBERALIZATION PRODUCTION PROCESS PRODUCTION STRUCTURE REDUCTION OF BARRIERS REGIONAL AGREEMENTS REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGIONALISM RULES OF ORIGIN SCALE ECONOMIES SHALLOW INTEGRATION TARIFF BARRIERS TARIFF LEVELS TARIFF LINES TARIFF RATES TECHNOLOGY SPILLOVERS TELECOMMUNICATIONS TRADE AGREEMENT TRADE BALANCE TRADE BARRIERS TRADE CREATING TRADE CREATION TRADE DIVERSION TRADE FLOWS TRADE INTENSITY TRADE MORE TRADE OPENNESS TRADE POLICY TRADE POLICY VARIABLES TRADE THEORY TRADE VOLUMES TRADING PARTNERS UNILATERAL LIBERALIZATION WORLD TRADE The author investigates the effects of preferential trade agreements (PTAs) on the net foreign direct investment (FDI) inflows of member countries using a comprehensive database of PTAs in a panel setting. He finds that PTA membership is associated with a positive change in net FDI inflows, and the FDI gains are increasing in the market size of the PTA partners and their proximity to the host country. The author identifies several different channels through which preferential trade liberalization may affect FDI, and confirms that both threshold effects (signing the agreement) and market size effects (joining a larger and faster-growing common market) are important determinants of net FDI inflows, although the latter seem to dominate. The estimated relationship is largely driven by North-South PTAs, and is most pronounced in the late 1990s and early 2000s, the period when the majority of "deep integration" PTAs had been advanced. 2012-06-22T20:39:27Z 2012-06-22T20:39:27Z 2006-11 http://documents.worldbank.org/curated/en/2006/11/7191052/beyond-trade-impact-preferential-trade-agreements-foreign-direct-investment-inflows http://hdl.handle.net/10986/8868 English en_US Policy Research Working Paper; No. 4065 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research