Latin American integration and the survival of trade relationships

Córdoba

Congreso; XIV Arnoldshain Seminar: Institutions, Trade and Economic Policy; 2016

Universidad Nacional de Córdoba - Facultad de Ciencias Económicas

Besedes et al. (2015) studied the effects of trade agreements on the survival of trade relationships. They found that trade agreements significantly increase the survival of trade relationships which had already started when the agreement takes place. Moreover, they showed that these agreements increase the hazard and reduce the initial volumes for those that start afterwards. We analyze whether the effects of EIAs on trade survival, initial volumes of trade and export growth are the same in Latin America as those described for the whole world. As our main contribution, we examine if these effects differ depending on the depth of the agreement. We also test if the quality of trade agreements, as measured by Kohl et al. (2016) has an impact on the survival of trade relationships.