Regional Trade Agreements

October, Friday 28th | 11:15-13:15 hs

Contributed Session CS13

Room 32

 
Chair: Nora Lustig, Director, Centro de Estudios sobre Globalización y Desarrollo del Sistema Tecnológico de Monterrey
 
 

 

 Inclusive Trade? Regional Dimensions and Implications of Politics of the Convergence in the FTAA

 

  

 

Session: Regional Trade Agreements

 

  

Presenter

 Luis Felipe Lopez-Calva, Instituto Teconológico y de Estudios Superiores de Monterrey, Campus Ciudad de México

 

  

Author(s)

Nora Lustig, Director, Centro de Estudios sobre Globalización y Desarrollo del Sistema Tecnológico de Monterrey

Luis Felipe Lopez-Calva, Instituto Teconológico y de Estudios Superiores de Monterrey, Campus Ciudad de México

Miguel Reyes, Universidad de las Américas, México

 

  

 

 

This paper has analyzed the potential effect of compensatory funds to help poor countries converge to higher growth rates during the process of integration. The evidence suggests that there is room for increasing the speed of convergence in the Central American region by investing in both infrastructure projects that link it to the world markets and in education of quality that redounds in adaptation and technological improvements able to increase the productivity substantially.

 

 

  Download this paper in PDF

 
 
 
 
 

 

 Effects of the North American Free Trade Agreement

 

  

 

Session: Regional Trade Agreements

 

  

Presenter

 Ricardo Cavazos-Cepeda, University of California at Berkeley

 

  

Author(s)

Ricardo Cavazos-Cepeda, University of California at Berkeley

Gary Thompson, University of Arizona at Tucson

 

  

 

 

NAFTA continues to be a controversial agreement. Trade data demonstrate that aggregate trade has increased because of wider access to each other’s market. We estimate the effects of NAFTA on trade patterns. A model of import demand and export supply is used. Indicator variables were included to measure the effects of NAFTA. Quarterly observations on bilateral trade flows between members were selected from 1986 through 2001. Results indicate that NAFTA has generally had a positive impact.

 

 

  Download this paper in PDF

 
 
 
 
 

 

 Assessing the Impact of the FTA with USA on the Peruvian Economy

 

  

 

Session: Regional Trade Agreements

 

  

Presenter

 Eduardo Moron, Universidad del Pacifico, Perú

 

  

Author(s)

Eduardo Moron, Universidad del Pacifico, Perú

 

  

Sponsor

The Tinker Foundation Scholarship

 

  

 

 

This paper aim to answer the fundamental question of how big is the impact of signing a FTA with the USA in terms of the long term GDP of the Peruvian economy. We use a dynamic-stochastic general equilibrium model. Under a very simple setup we calibrate and simulate the main aspects of the FTA: trade liberalization, increased market access, fiscal impacts, productivity boost and tighter commitment to property rights protection. Overall we find that the agreement has a significant impact.

 

 

  Download this paper in PDF

 
 
 
 
 

 

 A Re-evaluation of the Impact of Regional Agreements on Trade

 

  

 

Session: Regional Trade Agreements

 

  

Presenter

 Soledad Zignago, CEPII & Université de Paris 1-Pantheon Sorbonne, TEAM

 

  

Author(s)

Soledad Zignago, CEPII & Université de Paris 1-Pantheon Sorbonne, TEAM

Thierry Mayer, Université de Paris-Sud, CEPII and CERAS

Lionel Fontagné, CEPII, France

 

  

 

 

The endogeneity of a preferential trading agreement (PTA) has been recently demonstrated and the choice of the control group to evaluate the impact of a PTA is not an easy task. This impact is evaluated here first with respect to trade within countries. Second, we introduce country-pair effects to control for the unobservable characteristics making a PTA likely between two countries and find that a large part of the trade effects of PTAs are explained. Third, we apply score matching techniques.

 

 

  Download this paper in PDF

 
 
 
 
 

 

 International Comovements and Trade Barriers: Case of NAFTA

 

  

 

Session: Regional Trade Agreements

 

  

Presenter

 Maria Bejan, Instituto Tecnológico Autónomo de México (ITAM)

 

  

Author(s)

Maria Bejan, Instituto Tecnológico Autónomo de México (ITAM)

 

  

 

 

The paper investigates the effects of signing a trade agreement on the international comovements of two countries, under different financial market structures. We construct an international business cycle model with trade costs and we calibrate it for the case of the NAFTA. Combining the predictions of the bond economy in the pre-NAFTA period with the complete market predictions post-NAFTA, the results get closer to the behavior observed in the data.

 

 

  Download this paper in PDF