The Resource Essays on the economics of trade agreements, Arevik Mkrtchyan

Essays on the economics of trade agreements, Arevik Mkrtchyan

Label
Essays on the economics of trade agreements
Title
Essays on the economics of trade agreements
Statement of responsibility
Arevik Mkrtchyan
Creator
Contributor
Subject
Language
eng
Summary
The world trading system is governed through an ever expanding web of trade agreements, which subtly but powerfully determine the terms of market competition and how rents are distributed between countries, rms and consumers. This thesis studies two such agreements: rstly, Customs Unions regional agreements with a wide coverage of goods and a common external tari and secondly the Information Technology Agreement, a plurilateral agreement to eliminate import tari s on a narrow range of goods. The Silent Success of Customs Unions, the rst chapter, joint work with Hinnerk Gnutzmann, studies theoretically the incentives of governments which may be subject to lobbying to form bilateral trade agreements, considering both exceptions to the MFN principle permitted under GATT/WTO rules: namely, the Free Trade Area, where partner countries liberalise internal tari s to zero but retain independent in their external policy, and a Customs Union, which goes beyond FTA by requiring the countries to adopt a harmonised common external tari . We show that it is always a political equilibrium to implement CU. Crucially, while CUs may be formed because of lobbying, we show that they improve the welfare of member countries as long as trade with the rest of the world remains positive. In line with these results, we show empirically that CUs are much more important to world trade in terms trade volume and membership scope than so far acknowledged in the literature. Surprisingly little is known empirically about the e ect of Customs Unions on tari policy. In my second chapter, Determining the Common External Tari in a Customs Union: Evidence from the Eurasian Customs Union, I seek to ll the void. Using a large panel data set from the Eurasian Customs Union (ECU), established from 2010 between Russia, Belarus and Kazakhstan, I demonstrate the importance of mutual protectionism: member states user their bargaining power to spill over to CU partners high tari s for those goods which were previously strongly protected nationally. There is little evidence of the reverse 3 4 CONTENTS e ect, i.e. tari s being negotiated down for lines that were previously handled liberally in national tari policy. This e ect is demonstrated using three methodologies: analysis of variance using unique explanatory power of each variable, determining Shapley value from analysis of variance and OLS regression. The chapter also develops a simple model to rationalise the e ect. Trade facilitation, the reduction of administrative and other barriers barriers, has become a key policy priority. Customs Unions may eliminate internal border controls. But how strongly can such measures bene t trade? In the ECU, the elimination of borders proceeded in two stages, which allows me to study the Trade Impact of Non Tari Trade Costs in chapter 3. I control for tari changes and other factors to show that the growth in internal trade between the ECU member countries can be attributed to reduced trade costs, rather than trade diversion due to tari increases. The natural experiment of border removal thus allows more precise estimates of trade costs than approaches that capture non tari costs merely as a residual. Finally, The Layers of the Information Technology Agreement Impact joint work with Christian Henn turns to plurilateral agreements. We show how the WTO's Information Technology Agreement (ITA) a ected trade ows and value chain participation in the IT sector. We show that this agreement did not only lead to increased imports, but by reducing the cost of intermediate goods ITA members were also able to increase their exports of nal goods. Our estimation strategy is based on the plausibly exogenous entry of late signatories to the agreement, who rati ed the ITA as part of a broader policy objective. Using product level data, we are able to take into account the various layers of ITA impact, dissecting the impact of tari reduction, tari elimination to zero, and over and above tari reductions, including through rm relocation via intermediate goods channel. We nd that having zero tari s is associated with more imports of intermediate than nal goods, and with participation in global value chains. This nding also supports the line of thought that trade policy certainty attracts investment
Member of
Cataloging source
IT-FiEUI
http://library.link/vocab/creatorName
Mkrtchyan, Arevik
Date time place
Defence date: 6 October 2014
Dissertation note
Thesis (Ph. D.)--European University Institute (ECO), 2014.
Index
no index present
Literary form
non fiction
Nature of contents
theses
http://library.link/vocab/relatedWorkOrContributorName
European University Institute
Series statement
  • EUI PhD theses
  • EUI theses
http://library.link/vocab/subjectName
  • Investments
  • Tariff preferences
  • Trade blocs
Label
Essays on the economics of trade agreements, Arevik Mkrtchyan
Link
http://hdl.handle.net/1814/34561
Instantiates
Publication
Note
Examining Board: Professor Piero Gottardi, European University Institute (Supervisor); Professor Bernard Hoekman, European University Institute; Professor Marcelo Olarreaga, University of Geneva; Professor Natalya Volchkova, New Economic School, Moscow
Bibliography note
Includes bibliographical references (pages 107-114)
Carrier category
volume
Carrier category code
nc
Carrier MARC source
rdacarrier.
Content category
text
Content type code
txt
Content type MARC source
rdacontent.
Control code
FIEb17604515
Dimensions
30 cm.
Extent
ii, 114 pages
Media category
unmediated
Media MARC source
rdamedia.
Media type code
n
System control number
(OCoLC)914479246
Label
Essays on the economics of trade agreements, Arevik Mkrtchyan
Link
http://hdl.handle.net/1814/34561
Publication
Note
Examining Board: Professor Piero Gottardi, European University Institute (Supervisor); Professor Bernard Hoekman, European University Institute; Professor Marcelo Olarreaga, University of Geneva; Professor Natalya Volchkova, New Economic School, Moscow
Bibliography note
Includes bibliographical references (pages 107-114)
Carrier category
volume
Carrier category code
nc
Carrier MARC source
rdacarrier.
Content category
text
Content type code
txt
Content type MARC source
rdacontent.
Control code
FIEb17604515
Dimensions
30 cm.
Extent
ii, 114 pages
Media category
unmediated
Media MARC source
rdamedia.
Media type code
n
System control number
(OCoLC)914479246

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