B. Jiménez García, J. Rodríguez Puerta
The main purpose of our work is to estimate the dynamic impact of bilateral free trade agreements (FTAs) on economic relations between countries. We present an alternative methodology to gravity equations, the workhorse for assessing the ex post effects of trade agreements in international exports flows.
The study focuses on impulse response functions that can capture the dynamic impact of FTAs on trade flows over time. We apply transfer functions methodology to bilateral trade series after having estimated common factors to all trade series (such as global economic cycles) and more specific factors to group of countries.
We obtain a characterisation of these FTAs based on their effect on trade flows and also on the degree of symmetry or asymmetry of their aftermath. This approach facilitates a classification of the different FTAs. We present here the results for the US bilateral trade agreements.
Palabras clave / Keywords: free trade agreements, dynamic effects, factor analysis, transfer functions
Programado
Sesión V09 Series Temporales
1 de junio de 2018 17:20
Sala 2
