Have Bilateral Free Trade Agreements (BFTAs) been beneficial? Lessons learned from 11 U.S. BFTAs between 1992 and 2017.

ABSTRACT: This study analyzes aggregate data on trade flows to examine the performance of bilateral free trade agreements (BFTAs) between the United States and 11 BFTA nations in a two-dimensional approach. In line with the literature, this study applies the gravity model and analyzes the effect of the treatment using Poisson pseudo-maximum likelihood (PPML) panel data from 1992 to 2017. We use the PPML as an alternative methodology to an ordinary least squares model, as it can treat zero trade values and lead to unbiased estimates and different consistencies. We consider the trade in goods but excluded services because of the different nature of trade for services. Moreover, this study highlights the quantitative performance of BFTAs without considering the industry level to compare the overall ben

SUBMITTER: Alghabbabsheh TG 

PROVIDER: S-EPMC9000109 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature