The Uneven Roles of FTAs: Selection Effect or “Learning” Effect?

Previous studies on the role of FTAs in promoting members’ international trade have usually focused on FTA premium, ignoring the difference between selection effects – trade developments before the formation of FTAs – and “learning” effects – trade growth after the formation of FTAs. This paper considers this difference, using a large bilateral trade panel comprising data covering more than 50 years from 178 countries. South–South FTAs and North–South FTAs are most related to the selection effect while North–North FTAs have a significant “learning” effect.


Issue Date:
2012-02
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/143460
Published in:
Review of Applied Economics, Volume 08, Number 1
Page range:
1-13
Total Pages:
13
JEL Codes:
F10; F13; F15
Series Statement:
Vol.8
No.1-2




 Record created 2017-04-01, last modified 2017-08-26

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