The diverse effects of non-tariff measures on free trade agreements: Global empirical evidence from binary response models
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Date
2024-05-17
Open Access Location
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
John Wiley and Sons Ltd on behalf of Scottish Economic Society
Rights
(c) 2024 The Author/s
CC BY 4.0
CC BY 4.0
Abstract
We examine how non-tariff measures (NTMs) affect the formation of free trade agreements (FTAs), using data from 114 countries over the period 1986–2019 and applying binary response models. Splitting NTMs into eight categories, some tend to be restrictive, some promotive and some neutral, in terms of their effects on FTA formation. Technical measures tend to encourage, while non-technical measures tend to discourage, country-pairs to join FTAs. Aggregating all NTMs into one variable would give rise to weak conclusions. Our results for the 12 control variables are largely in line with those of previous studies on international trade flows or on FTAs but without considering NTMs.
Description
Keywords
binary response models, free trade agreements, non-tariff measures
Citation
Li XM. (2024). The diverse effects of non-tariff measures on free trade agreements: Global empirical evidence from binary response models. Scottish Journal of Political Economy. Early View. (pp. 1-21).