Trade effects of the Europe agreements: A theory-based gravity approach |
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| Authors: | Julia Spies Helena Marques |
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| Institution: | 1. Institute for Applied Economic Research (IAW) , 72074, Tübingen, Germany jspies@uni-hohenheim.de;3. Manchester Business School, The University of Manchester , Booth Street West, Manchester, M15 6PB, UK |
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| Abstract: | We analyze normalized productivity differences for 15 developing Latin American countries and four firm types: National Domestic, National Exporter, Foreign Domestic, and Foreign Exporter. There are no productivity thresholds for viability, export activity, or multinational activity, but we do find a clear size productivity premium and development productivity premium in the manufacturing sectors. We also find a clear foreign-ownership productivity premium, both for domestic firms and for exporting firms and both for manufacturing sectors and services sectors. In contrast, we only find an export productivity premium for national firms in the manufacturing sectors. |
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| Keywords: | free trade agreements gravity equation Central and Eastern Europe panel data |
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