Preferential trade agreements and manufactured goods exports: does it matter whom you PTA with?

This article explores two questions. First, do preferential trade agreements (PTAs) affect manufactured goods exports of developing countries? Second, does it matter for developing countries whom they sign the PTAs with? We find that the answer to both questions is yes. Using bilateral manufactured...

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Bibliographic Details
Published in:Applied economics 2013-12, Vol.45 (34), p.4754-4772
Main Authors: Dahi, Omar S., Demir, Firat
Format: Article
Language:English
Subjects:
Developing countries
Estimating techniques
Estimation
Exports
gravity equation
Industrial development
LDCs
manufactured goods exports
Manufacturing
Manycountries
preferential trade agreements
south-south and south-north trade
Studies
Trade agreements
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Summary:This article explores two questions. First, do preferential trade agreements (PTAs) affect manufactured goods exports of developing countries? Second, does it matter for developing countries whom they sign the PTAs with? We find that the answer to both questions is yes. Using bilateral manufactured goods exports data from 28 developing countries during 1978-2005; we find that South-South PTAs have a significantly positive effect on manufactured goods exports. In contrast, no such effect is detected in the case of South-North PTAs. We confirmed the robustness of these findings to estimation methodology, sample selection, time period, zero trade flows and multilateral trade resistance.
ISSN:0003-6846
1466-4283
DOI:10.1080/00036846.2013.804169