Trade Creation and Trade Diversion in Deep Agreements
Preferential trade agreements have boomed in recent years and extended their reach well beyond tariff reduction, to cover policy areas such as investment, competition, and intellectual property rights. This paper uses new information on the content...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/208101506520778449/Trade-creation-and-trade-diversion-in-deep-agreements http://hdl.handle.net/10986/28451 |
| Summary: | Preferential trade agreements have
boomed in recent years and extended their reach well beyond
tariff reduction, to cover policy areas such as investment,
competition, and intellectual property rights. This paper
uses new information on the content of preferential trade
agreements to examine the trade effects of deep agreements
and revisit the classic Vinerian question of trade creation
and trade diversion. The results indicate that deep
agreements lead to more trade creation and less trade
diversion than shallow agreements. Furthermore, some
provisions of deep agreements have a public good aspect and
increase trade also with non-members. |
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