TY - JOUR
T1 - Evaluating growth volatility susceptibility within regional free trade agreements
AU - Edwards, Jeffrey
AU - Ginn, Vance
PY - 2011
Y1 - 2011
N2 - It is believed by many that regional free trade agreements (RFTAs) are beneficial to a nation's economy. This paper compares the effects that trading partner volatility has on countries engaged and not engaged in RFTAs. What we find is that (1) whether a country is in an agreement or not, there is a statistically significant volatility spillover from trading partner economies, (2) being in an RFTA does not insulate oneself from non-RFTA volatility, and (3) participating in an RFTA actually increases susceptibility to volatility from other RFTA countries. We conclude that in terms of volatility susceptibility, it may be harmful for a country to enter into an RFTA. © 2010 John Wiley & Sons, Ltd.
AB - It is believed by many that regional free trade agreements (RFTAs) are beneficial to a nation's economy. This paper compares the effects that trading partner volatility has on countries engaged and not engaged in RFTAs. What we find is that (1) whether a country is in an agreement or not, there is a statistically significant volatility spillover from trading partner economies, (2) being in an RFTA does not insulate oneself from non-RFTA volatility, and (3) participating in an RFTA actually increases susceptibility to volatility from other RFTA countries. We conclude that in terms of volatility susceptibility, it may be harmful for a country to enter into an RFTA. © 2010 John Wiley & Sons, Ltd.
UR - https://dx.doi.org/10.1002/ijfe.411
U2 - 10.1002/ijfe.411
DO - 10.1002/ijfe.411
M3 - Article
VL - 16
JO - International Journal of Finance and Economics
JF - International Journal of Finance and Economics
IS - Issue 1
ER -