Bilateralism arises as a “second-best” option when countries seek benefits beyond those of regional approaches to free trade and those of unilateral liberalization. In spite of the regional initiatives for free trade in South Asia along with policy reforms in individual countries, Sri Lanka...

Using NAFTA as an illustrating example, I show that heterogeneity in the effects of free trade agreements (FTAs) both within and across agreements is not very well understood. Not only has NAFTA reduced trade frictions significantly more than other FTAs, but each NAFTA member country has enjoyed...

Using a novel common econometric specification, we examine the measurement of three important effects in international trade that historically have been addressed largely separately: the (partial) effects on trade of economic integration agreements, national borders, and bilateral distance....

This paper investigates empirically whether the ASEAN Free Trade Agreement had a building bloc or stumbling bloc effect on subsequent changes in MFN tariffs of four major ASEAN members. The method resembles the one recently used by Nuno Limão. We use tariff data to test whether MFN tariffs were...

We investigate the effect of economic integration agreements on the stability of international trade at the 4 digit SITC level. Using annual trade data for over 180 countries from 1962 to 2005 we examine how economic integration agreements affect the length of trade relationships, the volume at...

This paper demonstrates that the appropriate econometric technique of testing for the effect of regional integration on bilateral trade is to augment the standard gravity model with country specific dummies instead of regional integration dummies. Using data on bilateral trade between Tanzania...

Over the past decade, an increasing number of economies have resorted to regional trade agreements (RTAs) as a means to further the market-opening and rule-making agenda. In this context, this paper addresses the question as to whether and how selected elements of RTAs could be used as...

Understanding trade costs is essential for formulating policy interventions designed to reduce such costs. This report synthesises all OECD work on cost factors across the entire trade chain. These factors can be located behind the border, such as non-tariff regulatory measures, market access...

The potential multilateralisation of government procurement commitments in regional trade agreements (RTAs) presents many issues and challenges. To what extent do RTAs go beyond the 2012 revised Agreement on Government Procurement (GPA), and how do they differ among trading partners? This report...

In all the regions of the contemporary world—including Asia—there is a growing trend in market consolidation through regional collaboration in the form of bilateral and regional trade agreements. Regional cooperation and integration can facilitate the way for expanding...