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Article Dans Une Revue European Economic Review Année : 2006

Revisiting the Effects of Regional Trade Agreements on Trade Flows with Proper Specification of the Gravity Model

Résumé

This paper uses a gravity model to assess ex-post regional trade agreements. The model includes 130 countries and is estimated with panel data over the period 1962-1996. The introduction of the correct number of dummy variables allows for identification of Vinerian trade creation and trade diversion effects, while the estimation method takes into account a potential correlation between some of the explanatory variables and the bilateral specific effects introduced in the model, as well as a potential selection bias. In contrast to previous estimates in cross-section, results show that regional agreements have generated a significant increase in trade between members, often at the expense of the rest of the world.
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Dates et versions

hal-00020429 , version 1 (10-03-2006)

Identifiants

  • HAL Id : hal-00020429 , version 1

Citer

Céline Carrere. Revisiting the Effects of Regional Trade Agreements on Trade Flows with Proper Specification of the Gravity Model. European Economic Review, 2006, 50, pp.223-247. ⟨hal-00020429⟩
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