Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/180242
Authors: 
Fontagné, Lionel Gérard
Santoni, Gianluca
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper 6980
Abstract: 
Geography, economic size, or common history, help predicting signed regional trade agreements (RTAs). However, not all signed RTAs are “natural” according to economic determinants. En-dogeneity and general equilibrium effects of RTAS are the two mechanisms addressed in this paper. We estimate the time-varying probability for a country pair to sign a trade agreement and build upon structural gravity in general equilibrium to determine how the patterns of Global Value Chains shape the evolving geography of optimal RTAS. Our results confirm that the endogenous geography of RTAs is shaped by the development of GVCs.
Subjects: 
preferential trade agreements
global value chains
structural gravity
JEL: 
F13
F14
F15
Document Type: 
Working Paper

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