Date: 2019
Type: Article
Do we need deeper trade agreements for GVCS or just a BIT?
World economy, 2019, Vol. 42, No. 6, pp. 1713-1739
BOFFA, Mauro, JANSEN, Marion, SOLLEDER, Olga, Do we need deeper trade agreements for GVCS or just a BIT?, World economy, 2019, Vol. 42, No. 6, pp. 1713-1739
- https://hdl.handle.net/1814/66008
Retrieved from Cadmus, EUI Research Repository
The paper investigates two policies geared towards stimulating and shaping global value chains (GVCs), namely deep regional trade agreements (DRTAs) and bilateral investment treaties (BITs). In an augmented gravity model, we test the impact of both policies on a variety of trade in value added indicators. We find that both policies are likely to increase GVC trade, although their transmission channels differ. While backward linkages are stimulated through both BITs and DRTAs, forward linkages respond only to DRTAs. The estimates suggest that negotiating a DRTA with investment provisions has a higher impact on trade in value added than signing a shallow RTA and a separate BIT.
Additional information:
First published: 07 December 2018
Cadmus permanent link: https://hdl.handle.net/1814/66008
Full-text via DOI: 10.1111/twec.12766
ISSN: 0378-5920; 1467-9701
Publisher: Wiley
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