Effects of Hub-and-Spoke Free Trade Agreements on Trade: A Panel Data Analysis

We use panel data consisting of 96 countries and covering the period 1960–2000 to investigate the effects of free trade agreements (FTAs) and hub-and-spoke systems of FTA on exports. Our empirical results imply an annual growth rate of 5.57% in exports and hence a doubling of exports after 12.4 year...

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Veröffentlicht in:	World development 2010-08, Vol.38 (8), p.1105-1113
Hauptverfasser:	Hur, Jung, Alba, Joseph D., Park, Donghyun
Format:	Artikel
Sprache:	eng
Schlagworte:	average treatment effect Economics Estimation Export volume Exports fixed effect Free trade free trade agreement free trade agreement hub and spoke world bilateral trade data panel data analysis fixed effect average treatment effect Free trade and protection Growth rate Growth rates hub and spoke Impact analysis Manycountries Panel data panel data analysis Studies Trade agreements Trade liberalization Treaties world bilateral trade data
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Beschreibung
Zusammenfassung:	We use panel data consisting of 96 countries and covering the period 1960–2000 to investigate the effects of free trade agreements (FTAs) and hub-and-spoke systems of FTA on exports. Our empirical results imply an annual growth rate of 5.57% in exports and hence a doubling of exports after 12.4 years between FTA partners. Non-overlapping FTAs account for 4.12%, while hub-and-spoke FTAs account for 1.45% of the estimated export growth rate. This indicates that, in addition to the direct trade liberalizing effect of FTAs, the hub-and-spoke nature of FTAs has an additional positive effect on trade.
ISSN:	0305-750X 1873-5991
DOI:	10.1016/j.worlddev.2010.02.009