Regional Integration Agreements,Trade Flows and Economic Crisis: A Static and Dynamic Gravity Model |
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Authors: | Bassem Kahouli |
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Institution: | Faculty of Economics and Management, University of Sousse, City Riadh, Sousse, Tunisia |
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Abstract: | Regional trade agreements (RTA) strengthening is a crucial component of the contemporary global economy. These agreements are considered beneficial in many senses (economics: trade, FDI, growth, etc.) and are a stabilizing factor in international relations (politics). In this paper, I study the effects of RTAs on exports between members and non-members taking into account the Viner specification. I also try to estimate the effect of the recent economic crisis on the export flows and achievement of RTAs. I use a static and dynamic gravity model to 40 countries belonging to 6 heterogeneous RTAs for the period 1980–2011. This model is estimated taking into account the latest estimation techniques that treats endogeneity effects of integration and the existence of dynamic effect. |
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Keywords: | RTAs gravity model economic crisis panel GMM |
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