Replication data for: Do Free Trade Agreements Affect Tariffs of Nonmember Countries? A Theoretical and Empirical Investigation

Principal Investigator(s): View help for Principal Investigator(s) Kamal Saggi; Andrey Stoyanov; Halis Murat Yildiz

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APP2015-0360_data			10/12/2019 01:10:PM
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Project Citation:

Saggi, Kamal, Stoyanov, Andrey, and Yildiz, Halis Murat. Replication data for: Do Free Trade Agreements Affect Tariffs of Nonmember Countries? A Theoretical and Empirical Investigation. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113654V1

Project Description

Summary: We investigate the effects of free trade agreements (FTAs) on tariffs of non-member countries. In our multi-country model, the formation of an FTA leads members to reduce their exports to the rest of the world. Such external trade diversion weakens the ability of non-members to manipulate their terms of trade vis-a-vis FTA members, a mechanism that induces them to lower their tariffs on FTA members. We empirically confirm this insight using industry-level trade data for 192 importing and 253 exporting countries, along with information on all FTAs formed in the world during 1989-2011.

Scope of Project

JEL Classification:
F13 Trade Policy; International Trade Organizations
F14 Empirical Studies of Trade

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Published Versions

V1 [2019-10-12]

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