Template-type: ReDIF-Paper 1.0
Author-Name: Falvey, Rod
Author-Email: rfalvey@bond.edu.au
Author-Workplace-Name: Bond Business School, Bond University
Author-Name: Foster-McGregor, Neil
Author-Email: foster@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: The breadth of preferential trade agreements and the margins of exports
Abstract: We use recently available data on the core economic provisions of PTAs 
	 to identify which (types of) provisions seem to promote bilateral 
	 exports and the intensive and extensive margins of exports. Our evidence 
	 suggests that measures applied at the border tend to be aimed at 
	 expanding existing trade, while measures applied behind the border are 
	 aimed at creating trade in new products. Preferential measures tended to 
	 increase bilateral total exports and bilateral exports at the intensive 
	 margin, but have no significant effect on bilateral exports at the 
	 extensive margin. Measures applied on an MFN basis are unlikely to 
	 provide improved market access for PTA partners. When includeds 
	 individually we find that no provision has a statistically significant 
	 effect of the same sign on both trade margins, confirming the view that 
	 existing and potential exporters have opposing interests in PTA 
	 formation. Finally, we provide estimated effects for selected PTAs.
Classification-JEL: F10, F15
Keywords: PTA Breadth, Trade Margins, Gravity Equation
Series: UNU-MERIT Working Papers
Creation-Date: 20190415
Number: 2019-012
File-URL: https://unu-merit.nl/publications/wppdf/2019/wp2019-012.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2019012