American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
The Trade Effects of Endogenous Preferential Trade Agreements
American Economic Journal: Economic Policy
vol. 3,
no. 3, August 2011
(pp. 113–43)
Abstract
Structural new trade theory models have never been used to evaluate and quantify the role of preferential trade agreement (PTA) membership for trade in a way which is consistent with general equilibrium. Apart from filling this gap, the present paper aims at delivering an empirical model which takes into account both that PTA membership is endogenous and that the world matrix of bilateral trade flows contains numerous zero entries. These features are treated in an encompassing way by means of (possibly two-part) Poisson pseudomaximum likelihood estimation with endogenous binary indicator variables in the empirical model. (JEL F11, F13, F15)Citation
Egger, Peter, Mario Larch, Kevin E. Staub, and Rainer Winkelmann. 2011. "The Trade Effects of Endogenous Preferential Trade Agreements." American Economic Journal: Economic Policy, 3 (3): 113–43. DOI: 10.1257/pol.3.3.113Additional Materials
JEL Classification
- F11 Neoclassical Models of Trade
- F13 Trade Policy; International Trade Organizations
- F15 Economic Integration
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