Department

Economics, Finance and Quantitative Analysis

Document Type

Article

Publication Date

2016

Embargo Period

7-18-2018

Abstract

This paper studies the growth effects of regional trade agreements (RTAs), taking into account the WTO participation of RTA members. Assuming smaller preference margins of RTAs for WTO members than non-members, I show in a model a stronger growth effect of RTAs for non-WTO members than that for WTO members. Based on a comprehensive set of 270 RTAs and a large panel dataset covering 177 countries over the period of 1960-2007, the regression results show that RTAs promote growth for non-WTO members, while their growth effect is insignificantly different from zero for WTO members. This implies that the complementarity between the two approaches of trade liberalization in promoting economic growth is so far limited.

Journal

Southern Economic Journal

Journal ISSN

0038-4038

Volume

82

Issue

4

First Page

1374

Last Page

1401

Digital Object Identifier (DOI)

10.1002/soej.12113

Comments

Preprint.

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