Next Article in Journal
Digital Competitiveness in the European Union Era: The Greek Case
Next Article in Special Issue
Further Evidence on Import Demand Function and Income Inequality
Previous Article in Journal
Decomposing Inequality in Household Consumption Expenditure in Malaysia
Open AccessFeature PaperArticle

On PTAs and Bilateral Trade: Is GVC Trade Sensitive to the Breadth of Trade Policy Cooperation?

UNU-MERIT, Boschstraat 24, 6211 AX Maastricht, The Netherlands
*
Author to whom correspondence should be addressed.
Economies 2020, 8(4), 84; https://doi.org/10.3390/economies8040084
Received: 13 August 2020 / Revised: 1 October 2020 / Accepted: 12 October 2020 / Published: 15 October 2020
(This article belongs to the Special Issue Trade and Investment Policy and Global Value Chains)
We study the relationship between the scope of trade policy cooperation and bilateral trade flows with a particular focus on global value chain (GVC) trade using data on the core and non-core provisions included in preferential trade agreements (PTAs). We find that broader PTAs have a larger impact on trade flows involving intermediates relative to flows involving all products, suggesting that GVC trade is particularly sensitive to the scope of trade policy cooperation. We also investigate different dimensions of heterogeneity in PTAs. We find that core provisions tend to drive the effect of PTAs on the level of GVC trade and that PTAs are particularly effective in raising the level of GVC trade between developing economies. We explore these issues using a sample of 189 countries over the period 1990–2015, with data obtained from the latest release of the EORA multi-regional input–output tables and UN-COMTRADE data. View Full-Text
Keywords: PTAs; PTA breadth; horizontal depth; GVCs; structural gravity model PTAs; PTA breadth; horizontal depth; GVCs; structural gravity model
MDPI and ACS Style

Delera, M.; Foster-McGregor, N. On PTAs and Bilateral Trade: Is GVC Trade Sensitive to the Breadth of Trade Policy Cooperation? Economies 2020, 8, 84.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop