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:
Jan 01 2012
Publication Type:
Journal Article
ISSN:
0973-1687
Language:
English
Published in:
Review of Applied Economics, Volume 8, Number 1
Page range:
1-13
JEL Codes:
F10; F13; F15




 Record created 2017-10-30, last modified 2017-10-30

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