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Indiana University Bloomington

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Explore Business Horizons, the Kelley School's
bimonthly journal publishing original articles of interest to business academicians and practitioners. Marc J. Dollinger, professor of business administration, serves as editor-in-chief.

Faculty

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Journal Articles

Size of Regional Trade Agreements and Regional Trade Bias

2009, Applied Economics Letters

Michele U. Fratianni, Chang Hoon Oh

Abstract

We test the relationship between size of regional trade agreement (RTA) and regional trade bias using a gravity equation on a large sample of 143 countries for the period 1980-2003. We find that regional trade bias declines with the size of the club and that three of the four expanding RTAs have already surpassed their ‘optimal’ sizes. There is no evidence that RTAs have set protection levels against outsiders non-cooperatively.

Citation

Michele Fratianni and Chang Hoon Oh, "Size of Regional Trade Agreements and Regional Trade Bias", Applied Economics Letters, 2009, 16(6):1603-1606.

Keywords

Regional trade agreements, regional trade bias, trade flows