Exploring the Effects of FTAs on Chilean Exports: Heterogeneous responses and Financial Constraints
Year: 2024
Type: article
Abstract: In this paper, we examine the influence of Free Trade Agreements (FTAs) onChilean exports during the past thirty years.Over the last three decades, Chile has entered into 31 FTAs with 65 countries, encompassing nearly 90% of global GDP.Despite this, there's a notable absence of empirical evidence regarding the extent and nature of the impact of these agreements on export volumes and product diversification.With a rich dataset encompassing bilateral trade flows at the product-level and key financial indicators, we employ a difference-in-differences approach to provide robust evidence of the positive impact of these FTAs on export levels and the variety of products exported.Our analysis also reveals variations in these effects based on the industries' initial export share and trading partners' income levels.Furthermore, we investigate how FTAs interacted with the financial development and capital control policies of trading partners, demonstrating their role in mitigating financial constraints on trade.
Source: Estudios De Economia
Authors: Roberto Álvarez, Eugenia Andreasen
Institution: University of Chile
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4410116271