Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/191377 
Year of Publication: 
2018
Series/Report no.: 
Hohenheim Discussion Papers in Business, Economics and Social Sciences No. 27-2018
Publisher: 
Universität Hohenheim, Fakultät Wirtschafts- und Sozialwissenschaften, Stuttgart
Abstract: 
Since 1990, not only the number of signed preferential trade agreements (PTAs) has increased, but also their depth. That means, PTAs include comprehensive rules, which go way beyond tariff reductions, such as property rights, competition or investment provisions. This paper argues that especially in North-South agreements there is a diffusion of institutional quality from developed to developing countries. First, a PTA may affect institutions because it can serve as a network for political exchange and second, the regulations and commitments stipulated in it may affect local institutions in the South. I empirically investigate if there are positive effects of being a member in a PTA on the quality of institutions in developing countries by accounting for the number and the depth of PTAs using the Design of Trade Agreements (DESTA) database, established by Dür, Baccini and Elsig (2014). I create a large panel data set covering 32 years to account for endogeneity of several controls. The results support the hypothesis that deep PTAs lead to an improved quality of institutions in the South. The results differ with respect to the type of agreement and region.
Subjects: 
deep trade agreements
institutions
panel data
JEL: 
F13
F14
C23
C26
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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