Effects of a Deeper Central European Free Trade Agreement
This paper studies the economic effects of ‘deepening’ the Central European Free Trade Agreement (CEFTA). It combines new information on the content of trade agreements with gravity model estimates of the impact of deep trade agreements, agreements...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
Washington, DC: World Bank
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/717941646720980197/Effects-of-a-Deeper-Central-European-Free-Trade-Agreement http://hdl.handle.net/10986/37138 |
| Summary: | This paper studies the economic
effects of ‘deepening’ the Central European Free Trade
Agreement (CEFTA). It combines new information on the
content of trade agreements with gravity model estimates of
the impact of deep trade agreements, agreements that go
beyond the elimination of tariffs and other border
restrictions. The analysis suggests that CEFTA is a
relatively shallow trade agreement as it covers mostly
policy areas under the current WTO mandate. The estimated
trade impacts of CEFTA on member countries are relatively
modest, varying between 0.02 and 7.4 percent. CEFTA’s
members would gain from simultaneously deepening their
integration reciprocally and vis-a-vis the EU. In
particular, a trade agreement with the EU similar to the
EU-Norway agreement could increase total exports by CEFTA
members between 4 and 27 percent. |
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