On the effects of bilateral agreements in world wine trade

During the last decades there have been significant changes in trade regulations that are modifying the global trade of wine. The number of non-tariff measures (NTMs) adopted in the wine sector is relevant. Similarly, a large number of bilateral trade agreements have been adopted. Despite the regulation is heavy, the impact of these policy instruments on trade is not always clear, nor quantified at global scale. We investigate the effects that bilateral NTMs are showing on global imports of wine. In particular, we estimate a gravity model to explain how bilateral NTMs influence wine trade, and we disentangle these effects for different segments of the international market of wine. Our results suggest that bilateral NTMs tend to favour imports of wine. Differences emerge across market segments and types of regulations. In particular, the Technical Barriers to Trade favour (friction) bottled (bulk) wine; pre-shipment inspections enhance imports of bottled wine; the Sanitary and Phytosanitary Standards are the most trade-enhancing NTMs, regardless of the market segment.

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Appraising the Impacts of Globalization on Gravity Model Economic Systems

International Journal of Social Science and Economics Invention ◽

10.23958/ijssei/vol05-i09/164 ◽

2019 ◽

Vol 5 (09) ◽

Author(s):

Dr. Bilal Khlaf Al Omari

Keyword(s):

Latent Variable ◽

Bilateral Trade ◽

Trade Flow ◽

Trade Agreements ◽

Economic Systems ◽

General Hypothesis ◽

The World ◽

Set Up ◽

Time Required ◽

The Impact

This study aims at exploring the impact of economic globalization factors on the gravity economic systems. Nonetheless, the basis of the research is a gravity economic system exposed to the impacts of globalization, and the concern is to explore the effects of the exposure on the influences of distance and economic sizes on the model. Recognizing the role of population growth and globalization in driving bilateral trade follows is one of the objectives of this research as should be part of an economic model. The study used the modified gravity and globalization variables, data retrieved from the CEPII, the World Fact-book, and the World Bank. The ordinary squares regression and STATA statistical software were used to investigate the hypotheses. The model leading to the general hypothesis that globalization is reducing the cost of entry, and total time required to set up a business and to minimize the bureaucracy associated with registering businesses and launching operations. The trade flow latent variable should contain information on export, import, free trade agreements, preferential trade agreements, and union memberships, which would help in identifying globalization factors that mediate the interaction between global variables and bilateral trade responses.

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Effects of COVID-19 on trade flows: Measuring their impact through government policy responses

PLoS ONE ◽

10.1371/journal.pone.0258356 ◽

2021 ◽

Vol 16 (10) ◽

pp. e0258356

Author(s):

Javier Barbero ◽

Juan José de Lucio ◽

Ernesto Rodríguez-Crespo

Keyword(s):

Bilateral Trade ◽

State Of The Art ◽

Negative Impact ◽

Trade Agreements ◽

Trade Flows ◽

Policy Responses ◽

Negative Effect ◽

Bilateral Trade Flows ◽

Gravity Model Of Trade ◽

The Impact

This paper examines the impact of COVID-19 on bilateral trade flows using a state-of-the-art gravity model of trade. Using the monthly trade data of 68 countries exporting across 222 destinations between January 2019 and October 2020, our results are threefold. First, we find a greater negative impact of COVID-19 on bilateral trade for those countries that were members of regional trade agreements before the pandemic. Second, we find that the impact of COVID-19 is negative and significant when we consider indicators related to governmental actions. Finally, this negative effect is more intense when exporter and importer country share identical income levels. In the latter case, the highest negative impact is found for exports between high-income countries.

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INSTITUTIONS AND INTRA-REGIONAL TRADE IN CEFTA 2006: A GRAVITY APPROACH

Зборник радова Економског факултета у Источном Сарајеву ◽

10.7251/zrefis1817011k ◽

2019 ◽

Vol 1 (17) ◽

pp. 11

Author(s):

Łukasz Klimczak ◽

Jelena Trivić

Keyword(s):

Free Trade ◽

Bilateral Trade ◽

Free Trade Agreements ◽

Trade Agreements ◽

Trade Flows ◽

Positive Sign ◽

Regional Trade ◽

Bilateral Trade Flows ◽

The Impact

The purpose of this paper is to identify factors that had an influence on bilateral trade flows among the CEFTA countries with special emphasize: 1) on the role of CEFTA agreement and its preceding network of bilateral free trade agreements, and 2) on the role of institutions in facilitating intra-regional trade. In order to assess the impact of these variables on trade, we employed an augmented gravity model based on panel data of the CEFTA countries in fifteen years period (2000-2014). The results of the research suggest that there was a positive and statistically significant role of the CEFTA agreement on trade between its parties but the influence of the preceding bilateral free trade agreements was even higher. Results also showed that institutions can play an important role as trade facilitators, but mainly in the importing country while in the exporting country only three of six variables showed to have a positive sign.

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Exploiting the Trade Potential from Integration: Analysing the Impact of Free Trade Agreements between ASEAN and India and China

China Report ◽

10.1177/0009445518795999 ◽

2018 ◽

Vol 54 (4) ◽

pp. 442-466 ◽

Cited By ~ 1

Author(s):

Nguyen Xuan Trung ◽

Nguyen Duc Hung ◽

Nguyen Thi Hien

Keyword(s):

Free Trade ◽

Free Trade Agreement ◽

Bilateral Trade ◽

Positive Impact ◽

Stochastic Frontier ◽

Free Trade Agreements ◽

Trade Agreement ◽

Trade Agreements ◽

The Impact ◽

Stochastic Frontier Estimation

In this article, we use the technique of stochastic frontier estimation for the structural gravity model to analyse Vietnam’s bilateral trade and evaluate its exploitation of trade efficiency before and after its free trade agreements (FTAs) with China and India entered into force. The results from Vietnam’s bilateral trade data between 2000 and 2015 show that the ASEAN–India Free Trade Agreement (AIFTA) has had a positive impact on Vietnam’s bilateral trade flows while we found a remarkably negative effect on Vietnam’s exports but not imports after the entry into force of the ASEAN-China Free Trade Agreement (ACFTA). In addition, Vietnam’s participation in the regional trade agreements (RTAs) and FTAs has significantly reduced the costs of trade over time, and these impacts on Vietnam’s imports are much higher than those on Vietnam's exports.

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Determinants of bilateral trade between China and Africa: a gravity model approach

Journal of Economic Studies ◽

10.1108/jes-12-2018-0461 ◽

2020 ◽

Vol 47 (5) ◽

pp. 1015-1038

Author(s):

Zhijie Guan ◽

Jim Kwee Fat Ip Ping Sheong

Keyword(s):

Gravity Model ◽

Bilateral Trade ◽

Economic Recession ◽

Trade Agreement ◽

Trade Agreements ◽

Negative Effects ◽

Content Type ◽

Factors Affecting ◽

The Impact ◽

Model Approach

PurposeThe main purpose of this paper is to analyse the different factors affecting Sino-African trade based on the gravity model, and propose some solutions to improve the problems.Design/methodology/approachThe paper is based on an extended gravity model, including trade agreement and recession as explanatory variables. The impacts of trade agreement and economic recession on Sino-African imports and exports are examined.FindingsThe results show that the product of GDP affects African exports to China significantly and negatively, and affects African imports from China positively. Real exchange rate affects African exports to China positively, and affects African imports from China negatively. Population affect African exports to China significantly and positively, and affect African imports from China positively. Recession have negative effects on both African imports from China and exports to China but is only significant for imports. Agreement affects African imports from China and exports to China positively. Our findings confirm the impact of economic recession, and imply that the structure of African product exported to China should be improved, and trade agreements should be reinforced.Originality/valueThis paper contributes and extends the literature on Sino-African trade by improving the traditional gravity model to include the impact of all trade agreements, and their aggregating effects on trade. The paper also seeks to assess the trade impact of economic recession through a dynamic gravity model approach for which there has been no research done to our knowledge. In this regard, it provides new understanding of the trade pattern between China and Africa, and ways in improving the Sino-African bilateral trade.

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Tariff Elimination and the Competitiveness of Wine-Exporting Countries in Japan

Agricultural and Resource Economics Review ◽

10.1017/age.2020.25 ◽

2021 ◽

Vol 50 (1) ◽

pp. 76-98

Author(s):

Emily K. Greear ◽

Andrew Muhammad

Keyword(s):

Adverse Effects ◽

Bilateral Trade ◽

Trade Agreements ◽

Rotterdam Model ◽

The Impact ◽

Tariff Reductions ◽

Wine Demand

AbstractBilateral trade agreements between Japan and major wine-exporting countries have resulted in tariff eliminations in Japan. This raises questions about how tariffs affect the competitiveness of wine-exporting countries. The generalized dynamic Rotterdam model was used in estimating Japanese wine demand by source. Estimates were then used to project the impact of tariffs on imports of Australian, Chilean, French, German, Italian, Spanish, and U.S. wine. Tariff reductions primarily benefit affected countries, with limited adverse effects on competing countries. The elimination of tariffs on U.S. wine should offset any losses from competing trade agreements.

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Labor clauses in trade agreements: Hidden protectionism?

The Review of International Organizations ◽

10.1007/s11558-021-09423-3 ◽

2021 ◽

Author(s):

Céline Carrère ◽

Marcelo Olarreaga ◽

Damian Raess

Keyword(s):

Developing Countries ◽

Bilateral Trade ◽

Positive Impact ◽

A Priori ◽

Trade Agreements ◽

Trade Flows ◽

Middle Income ◽

Positive Effects ◽

Bilateral Trade Flows ◽

The Impact

AbstractWe explore the impact of the introduction and design of labor clauses (LCs) in preferential trade agreements (PTAs) on bilateral trade flows over the period 1990–2014. While it is not a priori clear if the inclusion of LCs in PTAs will decrease or increase bilateral trade, we expect the direction of trade to matter, that is, we expect to observe the (negative or positive) impact of LCs in the South-North trade configuration. We also expect, in that configuration, stronger LCs to yield stronger (negative or positive) effects on bilateral trade flows. Using a novel dataset on the content of labor provisions in PTAs, we find in line with our first expectation that while the introduction of LCs has on average no impact on bilateral trade flows, it increases exports of low and middle-income countries with weaker labor standards in North–South trade agreements. Consistent with our second expectation, this positive impact is mostly driven by LCs with institutionalized cooperation provisions. In contrast, LCs with strong enforcement mechanisms do not have a statistically significant impact on exports of developing countries in North–South PTAs. The results are inconsistent with the ideas that LCs are set for protectionist reasons or have protectionist effects, casting doubt on the logic for the reluctance of many developing countries to include LCs in their trade agreements.

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The impact of preferential trade agreements on bilateral trade: A structural gravity model analysis

PLoS ONE ◽

10.1371/journal.pone.0249118 ◽

2021 ◽

Vol 16 (3) ◽

pp. e0249118

Author(s):

Xing Yao ◽

Yongzhong Zhang ◽

Rizwana Yasmeen ◽

Zhen Cai

Keyword(s):

Gravity Model ◽

Bilateral Trade ◽

Market Access ◽

Trade Agreements ◽

Preferential Trade Agreements ◽

Trade Integration ◽

Preferential Trade ◽

Middle Income ◽

Wide Range ◽

The Impact

Trade agreements are thought to raise trade integration, but existing preferential trade agreements (PTAs) are insufficient in measuring market access of products. This study develops a product-based coverage index of PTAs using the World Trade Organization (WTO) preferential trade agreements and calculates bilateral trade measures using the EORA multi-regional input-output (MRIO) tables covering 189 countries worldwide over the period 1990–2015; the structural gravity model is employed to test how PTAs affect bilateral trade. Our findings show that countries sharing a common PTA could boost the trade volume compared to those without PTAs, supporting the trade creation effect. However, the trade promotion effect of the product-based coverage index of PTAs is significant only if the member countries are low-and middle-income countries. Further, the wide range of product liberalization brought by PTAs can promote global production networks by stimulating the trade of intermediate goods. Our results are important for understanding the market access effect of PTAs with the increasing development of trade integration and global value chains (GVCs).

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The Impact of Trade Agreement on Agricultural Trade Flow in West Africa

International Journal of Economics and Finance ◽

10.5539/ijef.v13n1p89 ◽

2020 ◽

Vol 13 (1) ◽

pp. 89

Author(s):

Christiana Manu

Keyword(s):

West Africa ◽

Free Trade ◽

Bilateral Trade ◽

Trade Flow ◽

Trade Agreement ◽

Trade Agreements ◽

Agricultural Trade ◽

Trading Partners ◽

Short Run ◽

The Impact

This paper analysed the impact of trade agreements on agricultural trade flow in West Africa. The study used 25 major trading partners of Ghana for 25 years between 1995 and 2019. Using the Gravity econometric model, this study finds that being a member of the trade agreement (FTA) is positively related to the aggregate flow of trade in agriculture. Trade agreements are found to increase trade flow with trading in agricultural products; especially trading partners in ECOWAS, if members agree on free trade in such products. The result shows that Ghana’s bilateral exports significantly increase with an increase in domestic and partner wages, and with distance, they decrease significantly. FTA was found to be a positive and significant determinant of Ghana’s bilateral trade in the long and the short run as well. Therefore, when there is a free trade agreement between countries, they tend to trade more among themselves than countries without the trade agreement.

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Do trade agreements activate new links and increase flows? A data-driven analysis of the global cereal market.

10.5194/egusphere-egu21-14664 ◽

2021 ◽

Author(s):

Benedetta Falsetti ◽

Luca Ridolfi ◽

Francesco Laio

Keyword(s):

Sharp Increase ◽

Trade Agreement ◽

Trade Agreements ◽

Global Scale ◽

Data Driven ◽

Agricultural Product ◽

Trade Network ◽

Food Trade ◽

The Impact

Given the importance of food imports for food security and the role of exports in income generation, food trade is an indispensable component of most countries&#8217; development strategies. Global and regional agreements set the rules for trade policies between countries. In this context, we investigate the impact of trade agreements on the trade network of agricultural products. We study whether the ratification of agricultural-oriented trade agreements has an influence on the topology of the cereal trade network (link establishment) and the variation of flows through existing links.Our analysis differs from previous studies for three main reasons. Firstly, it is a data-driven analysis, based on a dataset that combines the trade agreement structure provided by the World Bank and cereal trade flow data from FAOSTAT. Secondly, the analysis focuses on a global scale, considering data for all countries where information is available. Finally, we carried out the analysis at the level of aggregated cereals, both from a monetary (US$) and diet-based (Kcal) perspective, over the period from 1993 to 2015. This time interval includes the most important recent reforms in the agricultural sector.The results show that a new trade agreement between two countries increases the probability of activating a grain trade link by 7.3% in the year after the agreement is ratified. In the case where trade agreements are not considered, the probability of triggering a new link between two countries drops to 1.3%.Regarding the volume of flows, we classify variations into three categories: flow decrease (negative variation of the flux), mild increase (<50% increase in the flow intensity), and sharp increase (>50% increase).The results obtained, both in economic value (US$) and in quantitative variations (Kcal), show that the entry force of a trade agreement has two main effects: in flows covered by trade agreements, there is a significant increase in the percentage of flows experiencing a sharp increase, and a reduction of the percentage of flows experiencing a negative variation.&#160;We, therefore, provide here global-scale, data-based evidence. Previous results suggest that trade agreements are facilitators of the connections between different countries and, therefore, facilitators in terms of global food trade accessibility. &#160;This work aims to be a first attempt to investigate the impacts of international agreements simultaneously on the topology of the agricultural product trade network, and on the increase of existing link flows. Our intention is to dedicate further analysis about which trade agreements perform better, increasing the traded volume, to explore the role of trade liberalization at a worldwide level.&#160;

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