Belconnen ACT 2616, AUSTRALIA
NBER Working Papers and Publications
|August 2005||The Trade and Investment Effects of Preferential Trading Arrangements|
with Philippa Dee
in International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, Takatoshi Ito and Andrew K. Rose, editors
|December 2003||The Trade and Investment Effects of Preferential Trading Arrangements|
with Philippa Dee: w10160
This study quantifies the impact of traditional and new age' provisions of preferential trading arrangements (PTAs) on merchandise trade and investment. It does so by estimating gravity models of bilateral trade and investment. It finds that recent and some past PTAs are not as benign as some contemporary empirical assessments have suggested. A careful consideration of the analytical issues including controlling comprehensively for other observable and unobservable factors, and testing explicitly for whether the trade and investment effects are significantly different after PTA formation than before accounts for less favourable finding in this study. It is also possible for PTAs to have adverse effects on investment flows. If investment responds in beachhead' fashion to the trad...