Effects of Hub-and-Spoke Free Trade Agreements on Trade: A Panel Data Analysis

摘要

We use panel data consisting of 96 countries and covering the period 1960-2000 to investigate the effects of free trade agreements (FTAs) and hub-and-spoke systems of FTA on exports. Our empirical results imply an annual growth rate of 5.57% in exports and hence a doubling of exports after 12.4 years between FTA partners. Non-overlapping FT As account for 4.12%, while hub-and-spoke FT As account for 1.45% of the estimated export growth rate. This indicates that, in addition to the direct trade liberalizing effect of FT As, the hub-and-spoke nature of FT As has an additional positive effect on trade.