Gravity, bilateral agreements, and trade diversion in the Americas



Document title: Gravity, bilateral agreements, and trade diversion in the Americas
Journal: Cuadernos de economía (Santiago)
Database: CLASE
System number: 000317041
ISSN: 0716-0046
Authors: 1
2
Institutions: 1Macalester College, Saint Paul, Minnesota. Estados Unidos de América
2Banco Interamericano de Desarrollo, Washington, Distrito de Columbia. Estados Unidos de América
Year:
Season: May
Volumen: 46
Number: 133
Pages: 3-31
Country: Chile
Language: Inglés
Document type: Artículo
Approach: Analítico, descriptivo
English abstract Krishna (1998) shows that a bilateral agreement between two countries render a multilateral agreement less attractive if the bilateral agreement is trade diverting. This paper combines Krishna’s model with the empirical approach of Anderson and van Wincoop (2003) to show that the estimated effect of tariffs in a multiple country (n>3) context over time measures trade diversion. We apply this measure to new asymmetric, time-varying Latin American trade and tariff data using Anderson and van Wincoop’s (2003) nonlinear estimation approach and OLS. The results show an increase in trade diversion as sub-regional trade agreements proliferated and enthusiasm for the Free Trade Agreement of the Americas declined
Disciplines: Economía
Keyword: Econometría,
Comercio internacional,
Tratado de Libre Comercio de América del Norte (TLCAN),
Desviación de comercio,
Modelos econométricos,
Acuerdos comerciales
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