Replication data for: Do Free Trade Agreements Affect Tariffs of Nonmember Countries? A Theoretical and Empirical Investigation
- Saggi, Kamal
- Stoyanov, Andrey
- Yildiz, Halis Murat
AbstractWe investigate the effects of free trade agreements (FTAs) on tariffs of non-member countries. In our multi-country model, the formation of an FTA leads members to reduce their exports to the rest of the world. Such external trade diversion weakens the ability of non-members to manipulate their terms of trade vis-a-vis FTA members, a mechanism that induces them to lower their tariffs on FTA members. We empirically confirm this insight using industry-level trade data for 192 importing and 253 exporting countries, along with information on all FTAs formed in the world during 1989-2011.
Is supplement to
DOI: 10.1257/app.20150360 (Text)
Saggi, Kamal, Andrey Stoyanov, and Halis Murat Yildiz. “Do Free Trade Agreements Affect Tariffs of Nonmember Countries? A Theoretical and Empirical Investigation.” American Economic Journal: Applied Economics 10, no. 3 (July 2018): 128–70. https://doi.org/10.1257/app.20150360.
- ID: 10.1257/app.20150360 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12