Estimating the effects of free trade agreements on international trade flows using matching econometrics
This paper provides the first cross-section estimates of long-run treatment effects of free trade agreements on members' bilateral international trade flows using (nonparametric) matching econometrics. Our nonparametric cross-section estimates of ex post long-run treatment effects are much more stable across years and have more economically plausible values than corresponding OLS cross-section estimates from typical gravity equations. We provide plausible estimates of the long-run effects of membership in the original European Economic Community (EEC) and the Central American Common Market (CACM) between 1960 and 2000 and the estimates confirm anecdotal reports of these agreements' effectiveness.
Year of publication: |
2009
|
---|---|
Authors: | Baier, Scott L. ; Bergstrand, Jeffrey H. |
Published in: |
Journal of International Economics. - Elsevier, ISSN 0022-1996. - Vol. 77.2009, 1, p. 63-76
|
Publisher: |
Elsevier |
Keywords: | International trade flows Free trade agreements Matching econometrics Treatment effects |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Heterogeneous Economic Integration Agreement Effects
Baier, Scott L., (2015)
-
Putting Canada in the penalty box: trade and welfare effects of eliminating NAFTA
Baier, Scott L., (2019)
-
Baier, Scott L., (2019)
- More ...