An Empirical Investigation of Trade Diversion and Global Value Chains

• Tác giả: Francois de Soyres
• Ngôn ngữ: eng
• Ký hiệu phân loại: 351.82 Public administration
• Thông tin xuất bản: World Bank, Washington, DC, 2019
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 228655
• Chủ đề: 1. GLOBAL VALUE CHAIN; 2. REGIONAL TRADE AGREEMENTS; 3. TRADE AGREEMENTS; 4. TRADE DIVERSION; 5. TRADE POLICY

Tóm tắt

This paper uses data on directional trade flows and Regional Trade Agreements (RTA) to i) estimate the effects of RTA on trade flows and ii) assess the importance of Global Value Chains for these effects. Based on a Difference-in- Difference identification strategy, we find that RTAs are associated with: (1) an increase in trade within the region, (2) a decrease in inflows to the region, and (3) an increase in outflows from the region. The first two findings can be understood as trade creation and trade diversion due to a shift in demand associated with the lower trade barriers within the region and Rules of Origin as an implicit trade barrier for imports from the rest of the world. Global Value Chains are most relevant to understand the third finding on the increase in outflows from the region. The key determinant of the increase in outflows is the importance of the Regional Value Chains for imports of intermediates by members of the region.