Publication: The Economic Impact of Deepening Trade Agreements
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Published
2023-03-03
ISSN
0258-6770 (print)
1564-698X (online)
1564-698X (online)
Date
2024-03-25
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Abstract
This paper explores the economic impacts of preferential trade agreements, conditional on their level of ambition. It clusters 278 agreements, encompassing 910 provisions over 18 policy areas and estimates the trade elasticity for the different clusters. These elasticities are used in a series of general-equilibrium counterfactual situations for endowment economies, revealing that deepening existing agreements (the intensive margin of regional integration) could boost world trade by 3.9 percent and world GDP by 0.9 percent. The expected gains from deepening agreements within or across regions vary depending on the initial depth of agreements and the size of regional markets.
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“Fontagné, Lionel; Rocha, Nadia; Ruta, Michele; Santoni, Gianluca. 2023. The Economic Impact of Deepening Trade Agreements. World Bank Economic Review. © World Bank. http://hdl.handle.net/10986/41275 License: CC BY-NC-ND 3.0 IGO .”
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