Trade Creation and Diversion Revisited : Accounting for Model Uncertainty and Natural Trading Partner Effects »
Series: IMF Working Papers
Author(s): Chris Papageorgiou , Christian Henn , and Theo Eicher
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 March 2008
Keywords: Trade Creation and Trade Diversion, Preferential Trade Agreements, Bayesian Model Averaging, Country-Pair Fixed Effects, trade creation, trade flows, trade diversion, bilateral trade, trade agreements,
Trade theories covering Preferential Trade Agreements (PTAs) are as diverse as the literature in search of their empirical support. To account for the model uncertainty that surrounds the validity of the competing...