The Value of Deep Trade Agreements in the Presence of Pricing-to-Market
Do preferential trade agreements (PTAs) lead to greater market integration, more intense competition and less market power for firms? This paper integrates the detailed data on 257 preferential trade agreements from the World Bank's Deep Trade...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/106381616683931781/The-Value-of-Deep-Trade-Agreements-in-the-Presence-of-Pricing-to-Market http://hdl.handle.net/10986/35351 |
| Summary: | Do preferential trade agreements (PTAs)
lead to greater market integration, more intense competition
and less market power for firms? This paper integrates the
detailed data on 257 preferential trade agreements from the
World Bank's Deep Trade Agreements (DTA) database with
administrative customs datasets of product-level exports by
firms from thirteen developing and emerging countries to
estimate the responsiveness of firm-level exports, export
prices, and destination-specific markups to trade and
domestic policy commitments enshrined in deep trade
agreements. The findings suggest that both the direct and
indirect effects of deep trade agreement provisions on
export sales are quantitatively significant. Perhaps more
interestingly, the finding of a suggestive evidence of a
pro-competitive effect of PTAs. |
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