Estimating the staged effects of regional economic integration on trade volumes

I-Hui Cheng · Yingyi Tsai

28 citations0/0 files storedApplied Economics

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Global trade and economics Economic Growth and Productivity Regional Economics and Spatial Analysis

Abstract

This article compares various specifications of the gravity model of trade, which are commonly used in the literature. It shows that most of them can be regarded as nested versions of a general specification in which the heterogeneity of bilateral country-pair fixed effects is accounted for. This article constructs a modified gravity model in which both the conventional gravity variables and price-effect variable are included. It intends to discuss the trend of the effects of the enlargement and enhancement of regional blocs, particularly taking account of the staged effects to investigate the effects of regional economic agreements on trade volumes. The differences of the effects across regional blocs are investigated.

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References

2021Econometric Analysis of Panel Data 1990Econometric Models and Economic Forecasts 1985The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence 1964Shaping the World Economy: Suggestions for an International Economic Policy.1989The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade 1964Shaping the World Economy: Suggestions for an International Economic Policy 1997The Regionalization of the World Economy 1968An Econometric Study of International Trade Flows

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2014The link between regional integration agreements, trade flows and economic crisis 2018Export-enhancing Effects of Free Trade Agreements in South Asia 2013Regional Trade Agreements in Mediterranean Area: Econometric Analysis by Static Gravity Model 2013Gravity Model of International Trade, Its Variables, Assumptions, Problems and Applications

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