RTA and Foreign Trade: Does Any Difference Exist?

Agricultura Tropica et Subtropica, Vol. 43, No. 4, p. 60, 2010

8 Pages Posted: 14 Feb 2011

See all articles by Irena Pokorna

Irena Pokorna

Czech University of Life Sciences Prague - Faculty of Economics and Management

Lubos Smutka

Czech University of Life Sciences Prague - Faculty of Economics and Management

Date Written: March 14, 2010

Abstract

It is argued that international trade connected with overall liberalization can lead to economic growth. This view comes from neoclassical trade theory, which is known for its support of an open economy. This article analyses the position of selected regional integration groups (mostly consisting of developing countries) in the international market. We try to find commonalities between their intra- and extra-regional trade and determine whether the existence of regional integration can have an influence on the structure of trade. We analyse the structure of trade, especially agrarian trade, together with the pattern of export. This analysis is based on COMTRADE data.

The results show enormous differences between the chosen regional groups, which could be caused by the level of development of the member states in regional trade agreements. We can say that some countries prefer not to trade intra-regionally and would rather trade internationally, especially with their former colonial ruler. The structure of trade changes between the selected years, and there is a slight shift from low added value products to more valuable production

Keywords: Regional Trade Agreement (RTA), Revealed Comparative Advantage, Foreign Trade, Developing Countries, Revealed Comparative Advantage (RCA)

JEL Classification: F02, O18

Suggested Citation

Pokorna, Irena and Smutka, Lubos, RTA and Foreign Trade: Does Any Difference Exist? (March 14, 2010). Agricultura Tropica et Subtropica, Vol. 43, No. 4, p. 60, 2010, Available at SSRN: https://ssrn.com/abstract=1761459

Irena Pokorna (Contact Author)

Czech University of Life Sciences Prague - Faculty of Economics and Management ( email )

Kamycka 129
Prague, 165 21
Czech Republic

Lubos Smutka

Czech University of Life Sciences Prague - Faculty of Economics and Management ( email )

Kamycka 129
Prague, 165 21
Czech Republic

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