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Does size matter?

Dahlqvist, Erik LU (2018) NEKN01 20181
Department of Economics
Abstract (Swedish)
Since the middle of the nineties, the amount of Regional Trade Agreements has risen sharply. This have created more opportunities for countries to join world trading and be more connected to the rest of the world. However, each trade agreement is unique and it is therefore interesting to evaluate if there are factors that are more important than others. This paper will be looking at combined GDP and population for the agreement, as well as GDP per capita and number of countries in the agreement. What level of integration the agreement experiences can also play an important role, therefore there is a distinction between Free trade agreements (FTAs) and Custom unions. A dataset of 75 low to middle income countries were assembled and the... (More)
Since the middle of the nineties, the amount of Regional Trade Agreements has risen sharply. This have created more opportunities for countries to join world trading and be more connected to the rest of the world. However, each trade agreement is unique and it is therefore interesting to evaluate if there are factors that are more important than others. This paper will be looking at combined GDP and population for the agreement, as well as GDP per capita and number of countries in the agreement. What level of integration the agreement experiences can also play an important role, therefore there is a distinction between Free trade agreements (FTAs) and Custom unions. A dataset of 75 low to middle income countries were assembled and the bilateral trade between them, as well as data for the trade agreements they are a part of. The gravity model was then applied with variables for the before mentioned factors. The results were that combined GDP have a small, but positive effect on bilateral trade between member countries, and that the number of countries have a negative effect for both FTAs and customs unions. This suggest that a trade agreement between few, more developed countries is beneficial. (Less)
Please use this url to cite or link to this publication:
author
Dahlqvist, Erik LU
supervisor
organization
course
NEKN01 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
Trade, Regional trade agreements, Gravity model
language
English
id
8958758
date added to LUP
2018-09-26 10:45:04
date last changed
2018-09-26 10:45:04
@misc{8958758,
  abstract     = {{Since the middle of the nineties, the amount of Regional Trade Agreements has risen sharply. This have created more opportunities for countries to join world trading and be more connected to the rest of the world. However, each trade agreement is unique and it is therefore interesting to evaluate if there are factors that are more important than others. This paper will be looking at combined GDP and population for the agreement, as well as GDP per capita and number of countries in the agreement. What level of integration the agreement experiences can also play an important role, therefore there is a distinction between Free trade agreements (FTAs) and Custom unions. A dataset of 75 low to middle income countries were assembled and the bilateral trade between them, as well as data for the trade agreements they are a part of. The gravity model was then applied with variables for the before mentioned factors. The results were that combined GDP have a small, but positive effect on bilateral trade between member countries, and that the number of countries have a negative effect for both FTAs and customs unions. This suggest that a trade agreement between few, more developed countries is beneficial.}},
  author       = {{Dahlqvist, Erik}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Does size matter?}},
  year         = {{2018}},
}