Economics, Finance and Quantitative Analysis
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.
Southern Economic Journal
Digital Object Identifier (DOI)
Liu, Xuepeng, "Trade Agreements and Economic Growth" (2016). Faculty Publications. 4231.