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Descriptive Statistics of a Data Source - Essay Example

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This paper will review this article - ScottL Baier and Jeffrey Bergstrand. Estimating the effects of free trade agreements on international trade flows using matching econometrics. Journal of International Economics, 77(1), 2009, 63-76…
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Descriptive Statistics of a Data Source
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Download file to see previous pages The research reported in this journal article presents a non-parametrical assessment of data on global free trade agreements and their potential effects on the international trade flow based on a statistical assessment of the number and revenues generated from bilateral trade agreements established during the timeframe beginning in 1960 when few FTAs were negotiated, until 2000, when their existence began to dominate global trade policies. The authors concluded that this analysis of the correlation between these two parameters produced a useful and relevant estimate of the effects of FTSa on bilateral trade as a representative of a more generalised international profile. The data suggested that the absence of FTAs has become an increasingly negative economic burden on nations who lack such agreements in regard to their trading position on a bilateral basis.
The variables chosen for evaluation are:
1. Log sum of revenues for nations with FTAs; 5 year interval calculations 1960-2000;
2. Log sum of revenues for nations without FTAs, 5 year interval calculations 1960-2000;
3. Difference in log sum values for nations with and without FTAs as a function of time;
4. total number of FTAs worldwide for 5 year intervals ranging from 1960-2000.
The data represented in Figures 1-5 indicate that there was a positive correlation between the overall increase in the total number of FTAs globally and the disadvantage to nations not participating in FTAs in regard to the revenues generated by bilateral trade agreements. Overall, the results are suggestive that the increasing trend toward establishing FTAs affects other types of trade agreements, specifically, BTAs. ...Download file to see next pagesRead More
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