We quantify the relationships between deep trade liberalization and foreign direct investment (FDI). To this end, we focus on the effects of Deep Trade Agreements (DTAs), and we rely on a structural framework that simultaneously enables us to (i) estimate the direct impact of DTAs on FDI, (ii)...

Our aim is to test the idea that the WTO’s ability to regulate RTAs is likely to decline with the proliferation of RTAs worldwide. According to this idea: (1) “people who live in glass houses should not throw stones”, (2) with the proliferation of RTAs, WTO members are likely to place...

Since 1990 the number of preferential trade agreements has increased rapidly. Our argument explains this phenomenon, known as the new regionalism, as a result of competition for market access. Exporters that face trade diversion because of their exclusion from a preferential trade agreement...

In the past decade, the European Union and the United States have pushed aggressively for the development of bilateral and regional trade agreements. What are the strengths and weaknesses of these agreements? Are China's bilateral and regional trade agreements different from these agreements?...

The present study investigates the potential economic impacts of India- Korea CEPA using trade indices, partial equilibrium and computable general equilibrium. One hypothetical scenario is examined in SMART model and two hypothetical tariff liberalization scenarios are examined in GTAP model...

While some commentators credit bilateral and regional free trade agreements (RTAs) for increasing regional trade and per capita GDP in Asia, this chapter contends that the role of RTAs in expanding regional trade in Asia has been overstated and exaggerated. Put simply, this chapter demonstrates...

The median voter approach to trade policies within a Heckscher-Ohlin framework predicts that trade policy is pro-labor; while the lobbying model based on the argument of the free rider problem predicts that trade policy is pro-capital. We test these conflicting political economy theories using...

This paper uses a complex network approach for the analysis of bilateral trade data between countries over the period 1970-2000. We compute the network community structure for every year between 1970 and 2000 and compare it to null community structures that emerge from various models based on...