Book contents
- Frontmatter
- Contents
- Contributors
- Introduction: The Law and Economics of Contingent Protection
- 1 Preferential Trading Agreements: Friend or Foe?
- The “Legalization” of GATT Article XXIV – Can Foes Become Friends?
- 2 Third-Country Effects of Regional Trade Agreements
- 3 Contingent Protection Rules in Regional Trade Agreements
- 3.1 Commentary on “Contingent Protection Rules in Regional Trade Agreements”
- 4 The Limits of PTAs
- 5 EU and U.S. Preferential Trade Agreements: Deepening or Widening of WTO Commitments
- Straightening the Spaghetti Bowl
- 5.1 Comments on “Beyond the WTO? Coverage and Legal Inflation in EU and U.S. Preferential Trade Agreements”
- 6 Labor Clauses in EU Preferential Trade Agreements – An Analysis of the Cotonou Partnership Agreement
- 7 Do PTAs Actually Increase Parties' Services Trade?
- 8 A Model Article XXIV: Are There Realistic Possibilities to Improve It?
- 8.1 Comments on “A Model Article XXIV: Are There Realistic Possibilities to Improve It?”
- Index
- References
7 - Do PTAs Actually Increase Parties' Services Trade?
Published online by Cambridge University Press: 03 May 2011
Book contents
- Frontmatter
- Contents
- Contributors
- Introduction: The Law and Economics of Contingent Protection
- 1 Preferential Trading Agreements: Friend or Foe?
- The “Legalization” of GATT Article XXIV – Can Foes Become Friends?
- 2 Third-Country Effects of Regional Trade Agreements
- 3 Contingent Protection Rules in Regional Trade Agreements
- 3.1 Commentary on “Contingent Protection Rules in Regional Trade Agreements”
- 4 The Limits of PTAs
- 5 EU and U.S. Preferential Trade Agreements: Deepening or Widening of WTO Commitments
- Straightening the Spaghetti Bowl
- 5.1 Comments on “Beyond the WTO? Coverage and Legal Inflation in EU and U.S. Preferential Trade Agreements”
- 6 Labor Clauses in EU Preferential Trade Agreements – An Analysis of the Cotonou Partnership Agreement
- 7 Do PTAs Actually Increase Parties' Services Trade?
- 8 A Model Article XXIV: Are There Realistic Possibilities to Improve It?
- 8.1 Comments on “A Model Article XXIV: Are There Realistic Possibilities to Improve It?”
- Index
- References
Summary
World Trade Organization
Preferential liberalization of trade in services is not a new phenomenon, but it has become a more common and prominent feature of the latest generation of bilateral preferential trade agreements (PTAs) negotiated in this decade. As of September 15, 2008, fifty-six such accords have been notified to the World Trade Organization (WTO) under Article V of the General Agreement on Trade in Service (GATS; see Table 7.1). Most of those notifications arrived after 2001 – fifty compared to six before the year 2000. In addition, many more agreements are currently being negotiated.
One might expect that countries entering these PTAs do so with the objective of eliminating barriers to trade in services, but more importantly, in the hope that the agreements will actually increase bilateral services trade between the parties. Lack of reliable data on trade in services (especially of bilateral flows) has made it almost impossible to carry out empirical studies of the determinants of bilateral services trade flows and – in particular – of the effects of PTAs on trade flows in services. However, the availability of statistics on trade in services has improved over the past year, particularly among Organization for Economic Cooperation and Development (OECD) countries. Taking those developments in the statistical field into account, the main purpose of this chapter is to provide an initial quantitative estimate of the effect of PTAs on bilateral trade in services, using the standard gravity model.
- Type
- Chapter
- Information
- Preferential Trade AgreementsA Law and Economics Analysis, pp. 210 - 232Publisher: Cambridge University PressPrint publication year: 2011
References
., 1979. “A Theoretical Foundation for the Gravity Equation,” American Economic Review, 69, 106–16.Google Scholar
, and , 2003. “Gravity with Gravitas: A Solution to the Border Puzzle,” American Economic Review, 93 (March: 170–92).CrossRefGoogle Scholar
, and , 2006. “Gravity for Dummies and Dummies for Gravity Equations,” NBER Working Paper 12516 (September).
, and , 2005. “Do Free Trade Agreements Actually Increase Members' International Trade?,” Federal Reserve Bank of Atlanta Working Paper No. 2005–3.
, 1985. “The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence,” The Review of Economics and Statistics, 67(3):474–81.CrossRefGoogle Scholar
, 1989. “The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade,” The Review of Economics and Statistics, 71(1):143–53.CrossRefGoogle Scholar
, 2006. “Does Gravity Matter in a Service Economy?,” Review of World Economics, 142(2).CrossRefGoogle Scholar
, and , 2005. “Controlling for Heterogeneity in Gravity Models of Trade and Integration,” Federal Reserve Bank of St. Louis Review, January/February, 87(1):49–63.Google Scholar
, 1998. “Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?,” In (ed.), The Regionalization of the World Economy. Chicago: University of Chicago Press (for NBER).Google Scholar
, 1995. “Determinants of Bilateral Trade: Does Gravity Work in a Neo-Classical World?,” National Bureau of Economic Research Working Paper Series No. 5377.
, and , 1997. “Measurement of Non-Tariff Barriers,” Organisation for Economic Cooperation and Development Economics Department Working Paper No. 179.
, 2000. “A Note on the Proper Econometric Specification of the Gravity Equation,” Economic Letters 66(25):31.CrossRefGoogle Scholar
, and , 2002. “On Theories Explaining the Success of the Gravity Equation,” The Journal of Political Economy 110(2): 281–316.CrossRefGoogle Scholar
, 2004. Advanced International Trade Theory and Evidence. Princeton, NJ: Princeton University Press.Google Scholar
, , and , 2001. “Using the Gravity Equation to Differentiate among Alternative Theories of Trade,” The Canadian Journal of Economics, 34(2): 430–47.CrossRefGoogle Scholar
, , and , 1998. “Understanding the Home Market Effect and the Gravity Equation: The Role of Differentiating Goods,” NBER Working Paper No. 6804.
, and , 2003. “The Intangible Globalisation: Explaining Patterns of International Trade in Services,” Norwegian Institute of International Affairs Paper No. 657.
, and , 2004/2006. “The Gravity Equation in International Trade in Services,” Review of World Economics, 142(1).Google Scholar
, 1980. “Scale Economies, Product Differentiation, and the Pattern of Trade,” American Economic Review, 70: 950–9.Google Scholar
, and , 2009. “Services Liberalization in the WTO and in Preferential Trade Agreements,” in and (eds.), Opening Markets for Trade in ServicesNew York: Cambridge University Press.CrossRefGoogle Scholar
, and , 2004. “What Are the Main Challenges for the GATTs Framework? Don't Talk about the Revolution,” European Business Organization Law Review, 5:11–62.CrossRefGoogle Scholar
, , , and , 2008. “Measuring Trade in Services,” In , and (eds.), Handbook on International Trade in Services. New York: Oxford University Press.Google Scholar
, 2000. “One Money, One Market: The Effects of Common Currency on Trade,” Economic Policy 30, (April) 9–45.Google Scholar
, , and , 2006. “Services Liberalization in the New Generation of Preferential Trade Agreements: How Much Further than the GATS?,” WTO Staff Working Paper ERSD-2006–7.
, , and , 2007. “Services Liberalization in the New Generation of Preferential Trade Agreements: How Much Further than the GATS?,” World Trade Review, 6(2): 155–92.CrossRefGoogle Scholar
, , and , 2008. “The Race Towards Preferential Trade Agreements in Services: How Much Is Really Achieved?,” in , and , (eds.), The GATS and the International Regulation of Trade in Services. New York: Cambridge University Press.Google Scholar
and , 2007. “The WTO Promotes Trade, Strongly but Unevenly,” Journal of International Economics, 72(1): 151–75.CrossRefGoogle Scholar
., 1962. Shaping the World Economy: Suggestions for an International Economic Policy. New York: Twentieth Century Fund.Google Scholar
, 2006. “Trade in Services: Does Gravity Hold? A Gravity Model Approach to Estimating Barriers to Services Trade,” IIIS Discussion Paper No. 183.
- 1
- Cited by