Size of Regional Trade Agreements and Regional Trade Bias

8 Pages Posted: 24 Jan 2007

See all articles by Michele U. Fratianni

Michele U. Fratianni

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy; Universita' Politecnica delle Marche

Chang Hoon Oh

Simon Fraser University (SFU) - Beedie School of Business

Date Written: January 2007

Abstract

We test the relationship between size of regional trade agreement (RTA) and regional trade bias using a gravity equation on a large sample of 143 countries for the period 1980-2003. We find that regional trade bias declines with the size of the club and that three of the four expanding RTAs have already surpassed their 'optimal' sizes. There is no evidence that RTAs have set protection levels against outsiders non-cooperatively.

Keywords: RTA, regional trade bias, trade flows

JEL Classification: F13

Suggested Citation

Fratianni, Michele and Oh, Chang Hoon, Size of Regional Trade Agreements and Regional Trade Bias (January 2007). Available at SSRN: https://ssrn.com/abstract=959178 or http://dx.doi.org/10.2139/ssrn.959178

Michele Fratianni (Contact Author)

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy ( email )

Bloomington, IN 47405
United States
812-855-3360 (Phone)
812-855-3354 (Fax)

Universita' Politecnica delle Marche ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
39-071-2207120 (Phone)

Chang Hoon Oh

Simon Fraser University (SFU) - Beedie School of Business ( email )

8888 University Drive
Burnaby, British Colombia V5A 1S6
Canada

Register to save articles to
your library

Register

Paper statistics

Downloads
118
Abstract Views
929
rank
233,162
PlumX Metrics