Trade Liberalization and the Value of Firms: Stock Market Evidence from Singapore
22 Pages Posted: 17 Apr 2009
Date Written: April 16, 2009
We examine the e¤ect of the United States-Singapore Free Trade Agreement (FTA) on the value of frms listed in the Singapore Exchange using event study analysis. Despite the predictability of the FTA negotiation, we find that one event - the removal of the last obstacle to the free trade deal in January 2003 - increases the value of firms in some industries by 2-5%. These results may indicate that trade liberalization and FTAs do increase the value of firms.
Keywords: free trade agreements, event study analysis, Singapore
JEL Classification: F19
Suggested Citation: Suggested Citation