Publication:
Deep Trade Agreements and Global Value Chains

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dc.contributor.authorLaget, Edith
dc.contributor.authorOsnago, Alberto
dc.contributor.authorRocha, Nadia
dc.contributor.authorRuta, Michele
dc.date.accessioned2018-06-28T15:22:00Z
dc.date.available2018-06-28T15:22:00Z
dc.date.issued2018-06
dc.description.abstractPreferential trade agreements have become deeper over time, often encompassing policy areas that go beyond traditional trade policy, such as investment, competition, and intellectual property rights protection. In the literature, a prominent argument why countries sign "deep" agreements is to promote and facilitate the operation of global value chains. This paper exploits a new data set on the content of trade agreements and data on trade in value added and in parts and components, to quantify the impact of the depth of trade agreements on bilateral cross-border production linkages. The results show that adding a policy area to a trade agreement increases the domestic value added of intermediates (forward global value chain linkages) and the foreign value added of intermediates (backward global value chain linkages) by 0.48 and 0.38 percent, respectively. At the sectoral level, the positive impact of deep trade agreements is higher for higher value-added industries, suggesting that deep agreements help countries to integrate in industries with higher levels of value added. For a larger sample of countries and years, the results confirm that an additional provision in a trade agreement increases bilateral trade in parts and components by 0.3 percent. The content of trade agreements also matters for global value chain integration, but the impact varies by income group. Provisions outside the current mandate of the World Trade Organization (investment and competition policy) drive the effect of trade agreements on North-South trade in parts and components. Provisions under the current World Trade Organization mandate (tariff reduction and customs facilitation) drive the effect of trade agreements on South-South trade in parts and components.en
dc.identifierhttp://documents.worldbank.org/curated/en/356541529933295649/Deep-trade-agreements-and-global-value-chains
dc.identifier.doi10.1596/1813-9450-8491
dc.identifier.urihttps://hdl.handle.net/10986/29945
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8491
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectTRADE AGREEMENT
dc.subjectGLOBAL VALUE CHAINS
dc.subjectDEEP TRADE AGREEMENTS
dc.subjectREGIONAL INTEGRATION
dc.subjectCOMPETITION POLICY
dc.subjectINVESTMENT POLICY
dc.titleDeep Trade Agreements and Global Value Chainsen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleDeep Trade Agreements and Global Value Chains
okr.date.disclosure2018-06-25
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/356541529933295649/Deep-trade-agreements-and-global-value-chains
okr.guid356541529933295649
okr.identifier.doi10.1596/1813-9450-8491
okr.identifier.doihttps://doi.org/10.1596/1813-9450-8491
okr.identifier.externaldocumentum090224b085c8f5bd_1_0
okr.identifier.internaldocumentum30198880
okr.identifier.reportWPS8491
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/356541529933295649/pdf/WPS8491.pdfen
okr.statistics.combined7081
okr.statistics.dr356541529933295649
okr.statistics.drstats5766
okr.topicInternational Economics and Trade::Competition Policy
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicInternational Economics and Trade::Globalization and Financial Integration
okr.topicInternational Economics and Trade::Trade Finance and Investment
okr.topicInternational Economics and Trade::Trade Policy
okr.topicInternational Economics and Trade::Trade and Regional Integration
okr.topicPrivate Sector Development::Global Value Chains and Business Clustering
okr.unitMacroeconomics, Trade and Investment Global Practice
relation.isAuthorOfPublicationf938bd19-ef80-50c5-9b58-e8429fce3b91
relation.isAuthorOfPublication.latestForDiscoveryf938bd19-ef80-50c5-9b58-e8429fce3b91
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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