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Reciprocal Trade Agreements: Impacts on Bilateral Trade Expansion and Contraction in the World Agricultural Marketplace AgEcon
Vollrath, Thomas L.; Hallahan, Charles B..
The rapid increase in the number of bilateral and regional free-trade agreements since 1995 is a striking development. The proliferation of these agreements has raised questions about whether they have, in fact, opened markets, created trade, promoted economic growth, and/or distorted trade. This study uses panel data from 1975 to 2005 and a gravity framework model to identify the influence of reciprocal trade agreements (RTAs) on bilateral trade in the world agricultural marketplace. A benchmark, Heckman sample-selection and two generalized models, one of which accounts for RTA phase-in effects, are used to gauge the impact on partner trade of mutual as well as asymmetric RTA membership. Empirical results show that RTAs increase agricultural trade between...
Tipo: Report Palavras-chave: Trade policy; Reciprocal trade agreements; Bilateral; Regional; Missing trade; Gravity models; Agricultural and Food Policy; International Development; International Relations/Trade.
Ano: 2011 URL: http://purl.umn.edu/102755
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