The Trade and Investment Effects of Preferential Trading Arrangements

Philippa Dee and Jyothi Gali

in International Trade in East Asia

Published by University of Chicago Press

Published in print September 2005 | ISBN: 9780226378961
Published online February 2013 | e-ISBN: 9780226379005 | DOI:
The Trade and Investment Effects of Preferential Trading Arrangements

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This chapter examines the effects of the trade and nontrade provisions of preferential trading arrangements (PTAs) on international trade and foreign direct investment (FDI) flows of member and nonmember countries. The analysis reveals that there may be economic gains from the nontrade provisions of third-wave PTAs but there are still economic costs associated with the preferential nature of the trade provisions. This chapter suggests that there could be real benefits if countries could use regional negotiations to persuade trading partners to make progress in reforming such things as investment, services, competition policy, and government procurement, especially if this is done on a nonpreferential basis.

Keywords: preferential trading agreements; international trade; foreign direct investment; economic costs; trading partners; government procurement; competition policy

Chapter.  18007 words.  Illustrated.

Subjects: Business and Management

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