Journal of Shanghai University (Social Science Edition) ›› 2022, Vol. 39 ›› Issue (2): 82-97.

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The Effect of the Depth of FTAs on Domestic Value-Added Exports

  

  1. School of Economics, Shanghai University,
  • Received:2021-05-14 Online:2022-03-15 Published:2022-03-15

Abstract: Over the past three decades, the rapid development of global value chains and free trade agreements (FTAs) have become two new features of international trade. The deep FTAs which aim at strengthening “trade policy coordination” among members have gone beyond WTO authorization and exerted a profound influence on value-added trade driven by global value chains. Empirical analysis shows that the depth of FTAs has significant positive effects on both the total trade and value-added trade among member countries. Secondly, FTAs not only enhance the export levels of simple and complex global value-chain trade, but promote value-added export of each sub-items to various degrees. Further study shows gaps in economic levels among FTA members and FTA structures can lead to heterogeneous effects on domestic value added exports. Besides, from the perspective of FTA contents, WTO-X clauses have more important effects on members’ domestic value-added exports.

Key words: FTA depth, domestic value-added exports, heterogeneity

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