Deep Trade Agreements and FDI in Partial and General Equilibrium A Structural Estimation Framework

This paper quantifies the relationships between deep trade liberalization and foreign direct investment. To this end, it focuses on the effects of deep trade agreements. The analysis relies on a structural framework that simultaneously enables (i) estimating the direct impact of deep trade agreement...

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Bibliographic Details
Main Author: Larch, Mario
Other Authors: Yotov, Yoto V.
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2023
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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100 1 |a Larch, Mario 
245 0 0 |a Deep Trade Agreements and FDI in Partial and General Equilibrium  |h Elektronische Ressource  |b A Structural Estimation Framework  |c Mario Larch 
260 |a Washington, D.C  |b The World Bank  |c 2023 
300 |a 62 pages 
653 |a International Economics and Trade 
653 |a Deep Trade 
653 |a Foreign Direct Investment (FDI) 
653 |a Trade Liberalization 
653 |a Deep Trade Agreements 
700 1 |a Yotov, Yoto V. 
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520 |a This paper quantifies the relationships between deep trade liberalization and foreign direct investment. To this end, it focuses on the effects of deep trade agreements. The analysis relies on a structural framework that simultaneously enables (i) estimating the direct impact of deep trade agreements on foreign direct investment, (ii) translating the partial deep trade agreement estimates into general equilibrium effects on foreign direct investment; and (iii) obtaining partial deep trade agreement effects on trade and quantifying the impact of deep trade agreements on foreign direct investment through trade. The paper obtains sizeable, positive, and statistically significant estimates of the effects of deep trade agreements on both trade and foreign direct investment. A counterfactual analysis suggests that together with direct and indirect channels deep trade agreements have contributed