Vertical Gravity
Brooks, Douglas H.; Ferrarini, Benno | July 2012
Abstract
The paper examines the drivers of international production networks and vertical trade integration in an augmented gravity model that employs the newly developed Network Trade Index as a regressant. Based on bilateral trade data among 75 countries from 1998 to 2005, the findings emphasize trade policy’s role in facilitating network trade. For example, a 10% tariff reduction raises vertical trade by 6.2%, on average. Preferential trade agreements are found to significantly boost vertical integration.
Citation
Brooks, Douglas H.; Ferrarini, Benno. 2012. Vertical Gravity. © Asian Development Bank. http://hdl.handle.net/11540/1604.ISSN
1655-5252
Keywords
Economics
Public Sector
Free Trade
Health
Trade
Development
Economic integration
Regional integration
Industry
Cooperation
Free Trade
Poverty
Economics
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Citable URI
http://hdl.handle.net/11540/1604Metadata
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