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Interdependent Preferential Trade Agreement Memberships: An Empirical Analysis

Title data

Egger, Peter ; Larch, Mario:
Interdependent Preferential Trade Agreement Memberships: An Empirical Analysis.
In: Journal of International Economics. Vol. 76 (December 2008) Issue 2 . - pp. 384-399.
ISSN 0022-1996
DOI: https://doi.org/10.1016/j.jinteco.2008.08.003

Abstract in another language

The establishment of a new preferential trade agreement (PTA) or the expansion of an existing one alters the incentives of non-members to participate in a PTA. This can lead to a domino effect whereby non-members join an existing PTA. Or it can lead a pair of countries to establish a new PTA. We examine the determinants of why a pair of countries enters a bilateral PTA. Our emphasis is on (a) the impact of pre-existing PTAs and (b) whether this impact is larger when the members of pre-existing PTAs are on average geographically close to the pair of countries. Using data for 145 countries during 1955–2005, we find evidence that pre-existing PTAs increase the probability that a country-pair will enter a bilateral PTA and that this effect diminishes with distance. The analysis makes use of techniques drawn from spatial econometrics.

Further data

Item Type: Article in a journal
Refereed: Yes
Keywords: Probit model; Spatial econometrics; preferential trade agreements
Subject classification: F15; C11; C15; C25
Institutions of the University: Faculties > Faculty of Law, Business and Economics > Department of Economics > Lehrstuhl Volkswirtschaftslehre VI: Empirische Wirtschaftsforschung
Faculties > Faculty of Law, Business and Economics > Department of Economics > Lehrstuhl Volkswirtschaftslehre VI: Empirische Wirtschaftsforschung > Lehrstuhl für Volkswirtschaftslehre VI: Empirische Wirtschaftsforschung - Univ.-Prof. Dr. Mario Larch
Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics
Result of work at the UBT: No
DDC Subjects: 300 Social sciences > 330 Economics
Date Deposited: 14 Oct 2015 13:07
Last Modified: 14 Oct 2015 13:07
URI: https://eref.uni-bayreuth.de/id/eprint/16639