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Log messages valentina studio pro12/9/2023 ![]() ![]() ![]() We apply a standard difference in difference approach controlling for any firm-year, destination-year, and origin-destination specific factor affecting the export performances of firms. whose implementation is supported by strong legal language and by the availability of a dispute settlement mechanism) – our preferred measure (3) number of provisions covered by the current mandate of the WTO (WTO+) (4) number of provisions not covered by the current mandate of the WTO (WTO-X) and (5) number of provisions directly related to trade enhancing factors. Namely, we construct several proxies of RTAs’ depth based on the policy areas covered by the agreements and their legal enforceability: (1) total number of provisions (independently of their legal enforceability) (2) number of legally enforceable provisions (i.e. We adapt the standard gravity model for trade (Head and Mayer 2014) to firm-level analysis in which we include a variable capturing the depth of RTAs. 2016) with detailed information on the content of more than 300 RTAs from the World Bank Deep Trade Agreements database (Hofmann et al. The analysis combines firm-level export data for 31 developing countries for the period 2000-2020 from the World Bank Exporter Dynamics Database (Fernandes et al. We empirically investigate the effect of deep trade agreements on the export performance of heterogeneous firms. Firm-level effects of deeper trade agreements These effects have important implications for the welfare of signatory countries that were neglected by the existing literature on the consequences of deep trade agreements. Large firms and firms involved in global value chains (GVCs) benefit the most from the enforcement of deep trade agreement, while small firms suffer the increased competition at destination ( pro-competitive effect) and may exit from the export market ( selection effect). 2023) shows that, in line with the new new trade theory, the effect of deep trade agreements depends on the firms' characteristics. 2021), there is little understanding of how deep trade agreements impact on firms. ![]() 2019, Orefice and Rocha 2011, Mattoo et al. While a large body of literature focuses on aggregate trade flows (e.g. Many developing countries have signed deep regional trade agreements (RTAs) during the last two decades with the aim of better integrating their economies and improving the export performance of firms (Hofmann et al. ![]()
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