Third-country effects on the formation of free trade agreements
The recent proliferation of free trade agreements (FTAs) has resulted in an increasingly complex network of preferential trading relationships. The economics literature has generally examined the formation of FTAs as a function of the participating countries' economic characteristics alone. In...
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| Veröffentlicht in: | Journal of international economics 2010-11, Vol.82 (2), p.238-248 |
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| container_end_page | 248 |
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| container_title | Journal of international economics |
| container_volume | 82 |
| creator | Chen, Maggie Xiaoyang Joshi, Sumit |
| description | The recent proliferation of free trade agreements (FTAs) has resulted in an increasingly complex network of preferential trading relationships. The economics literature has generally examined the formation of FTAs as a function of the participating countries' economic characteristics alone. In this paper, we show both theoretically and empirically that the decision to enter into an FTA is also crucially dependent on the participating countries' existing FTA relationships with third countries. Accounting for the interdependence of FTAs helps to explain a significant fraction of FTA formations that would not otherwise be predicted by countries' economic characteristics. |
| doi_str_mv | 10.1016/j.jinteco.2010.06.003 |
| format | Article |
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| identifier | ISSN: 0022-1996 |
| ispartof | Journal of international economics, 2010-11, Vol.82 (2), p.238-248 |
| issn | 0022-1996 1873-0353 |
| language | eng |
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| source | RePEc; ScienceDirect Journals (5 years ago - present) |
| subjects | Concession erosion Decision making Developing countries Economic theory Free trade Free trade agreements Free trade agreements Third-country effect Loss sharing Concession erosion Free trade areas International trade LDCs Loss sharing Studies Third-country effect Trade agreements Trade negotiations Trade preferences Trade relations Trade theory |
| title | Third-country effects on the formation of free trade agreements |
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