Depth and Death: Trade Agreements and Trade Duration

B-Tier
Journal: Review of International Economics
Year: 2025
Volume: 33
Issue: 3
Pages: 519-536

Authors (3)

Tibor Besedeš (not in RePEc) Juan Moreno‐Cruz (not in RePEc) Volker Nitsch (Technische Universität Darmsta...)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine how shallow and deep economic integration agreements affect duration of spells of trade. We build a dynamic model of firm behavior which allows us to characterize duration of trade and the effect of agreements. The model predicts that duration increases in size and length of spells, which is supported by data. The model also predicts that agreements will reduce the hazard of already active spells when an agreement starts, and increase the hazard of spells that start after the agreement. We find empirical support for these predictions as well. Shallow agreements have larger effects than deep agreements.

Technical Details

RePEc Handle
repec:bla:reviec:v:33:y:2025:i:3:p:519-536
Journal Field
International
Author Count
3
Added to Database
2026-01-26