Do Hub-and-Spoke Free Trade Agreements Increase Trade? A Panel Data Analysis
Alba, Joseph; Hur, Jung; Park, Donghyun | April 2010
Abstract
"We use panel data consisting of 96 countries and covering the period 1960–2000 to investigate the effects of free trade agreements (FTAs) and hub-and-spoke systems of FTAs on exports. Our empirical results imply an annual growth rate of 5.57% in exports, leading to a doubling of exports after 12.4 years, between FTA partners. Nonoverlapping FTAs account for 4.12%, while hub-and-spoke FTAs account for 1.45% of the estimated export growth rate. This indicates that in addition to the direct trade liberalizing effect of FTAs, the hub-and-spoke nature of FTAs has an additional positive effect on trade."
Citation
Alba, Joseph; Hur, Jung; Park, Donghyun. 2010. Do Hub-and-Spoke Free Trade Agreements Increase Trade? A Panel Data Analysis. © Asian Development Bank. http://hdl.handle.net/11540/1958. License: CC BY 3.0 IGO.Keywords
Trade Facilitation
Trade
Economic integration
Regional Economic Integration
Free Trade
Trade Agreements
Trade Policy
Economic Development
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