Do Hub-and-Spoke Free Trade Agreements Increase Trade? A Panel Data Analysis

Arbeitspapier

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 FTAs on exports. Our empirical results imply an annual growth rate of 5.57% in exports, leading to 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADB Working Paper Series on Regional Economic Integration ; No. 46

Classification and Topics

• Classification: Wirtschaft ; Economic Integration
• Subject: free trade agreement ; hub and spoke ; world bilateral trade data ; panel data analysis ; fixed effect ; average treatment effect

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Alba, Joseph ; Hur, Jung ; Park, Donghyun
• Event: Veröffentlichung
• (who): Asian Development Bank (ADB)
• (where): Manila
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/109557
• Last update: 10.03.2025, 11:44 AM CET