Open AccessExploring the Links between Bilateral and Regional Trade Agreements and Merchandise Trade
Author(s) -
Barbalet Felix,
Greenville Jared,
Crook Wayne,
Gretton Paul,
Breunig Robert
Publication year - 2015
Publication title -
asia and the pacific policy studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.529
H-Index - 14
ISSN - 2050-2680
DOI - 10.1002/app5.101
Subject(s) - bilateral trade , international trade , regional trade , international economics , economics , value (mathematics) , trade barrier , international free trade agreement , free trade , business , geography , archaeology , machine learning , computer science , china
Over 200 bilateral and regional trade agreements are currently in force, yet their impact remains a topic of debate. We analyse effects of 27 agreements that are of particular importance for A ustralia on the value of merchandise trade flows using data from 1970 up to the global financial crisis in 2008. We show that preferential trade agreements generally increase trade between members but that there are often offsetting negative effects on trade with non‐signatories. In contrast to regional trading blocs and bilateral accords, agreements more oriented towards open trade principles have a positive impact on all trade flows of member nations.