NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Are Free Trade Agreements Contagious?

Richard Baldwin, Dany Jaimovich

NBER Working Paper No. 16084
Issued in June 2010
NBER Program(s):   ITI

This paper presents a new model of the domino effect which is used to generate an empirical index of how "contagious" FTAs are with respect to third nations. We test our contagion hypothesis together with alternative specifications of interdependence and other political, economical and geographical determinants of FTA formation. Our main finding is that contagion is present in our data and is robust to various econometric specifications and samples.

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Document Object Identifier (DOI): 10.3386/w16084

Published: “Are Free Trade Agreements Contagious?”, with Dany Jaimovich, Journal of International Economics, Volume 88, Issue 1, September 2012, Pages 1–16. citation courtesy of

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