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Estimating the effects of trade agreements: Lessons from 60 years of methods and data
Journal article   Open access   Peer reviewed

Estimating the effects of trade agreements: Lessons from 60 years of methods and data

Mario Larch and Yoto V. Yotov
World economy
11 Mar 2024
url
https://doi.org/10.1111/twec.13569View
Published, Version of Record (VoR) Open

Abstract

Business & Economics Business, Finance Economics International Relations Social Sciences
Starting with Tinbergen (1962, Shaping the world economy: Suggestions for an international economic policy, The Twentieth Century Fund), quantifying the effects of regional trade agreements (RTAs) on international trade flows has always been among the most popular topics in the trade literature. Also not surprisingly, to estimate the effects of RTAs, most researchers and policy analysts have relied on the workhorse model of trade-the gravity equation. Over the past 60 years, there have been many important developments in the RTA literature, both in terms of better methods to quantify their effects, and in terms of more and higher quality data. The objective of this paper is to trace the evolution of the methods and data developments in the RTA literature, from Tinbergen's very first exploration until today, and to critically evaluate their significance for our ability to measure the impact of RTAs (and other policies) on international trade.

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23 citations in Scopus

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UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#8 Decent Work and Economic Growth
#17 Partnerships for the Goals

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Business, Finance
Economics
International Relations
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