Effects of Hub-and-Spoke Free Trade Agreements on Trade: A Panel Data Analysis

B-Tier
Journal: World Development
Year: 2010
Volume: 38
Issue: 8
Pages: 1105-1113

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

Summary We use panel data consisting of 96 countries and covering the period 1960-2000 to investigate the effects of free trade agreements (FTAs) and hub-and-spoke systems of FTA on exports. Our empirical results imply an annual growth rate of 5.57% in exports and hence a doubling of exports after 12.4 years between FTA partners. Non-overlapping FTAs account for 4.12%, while hub-and-spoke FTAs account for 1.45% of the estimated export growth rate. This indicates that, in addition to the direct trade liberalizing effect of FTAs, the hub-and-spoke nature of FTAs has an additional positive effect on trade.

Technical Details

RePEc Handle
repec:eee:wdevel:v:38:y:2010:i:8:p:1105-1113
Journal Field
Development
Author Count
3
Added to Database
2026-01-24