Preferential Trade Agreements: Design Matters!
Report by Leonardo Baccini, Andreas Dür and Manfred Elsig (LSE, University of Salzburg, WTI)
Preferential trade agreements have been proliferating since the 1990s. However, research that focuses on differences of design of such agreements is scarce. This column analyses whether this is the case by exploring the effect of depth of preferential trade agreements on trade flows. It concludes that deep agreements have larger trade flow effects than shallow ones.