Using a fixed-effects approach as well synthetic control methods we provide evidence on a causal link between regional trade agreements and investment confidence. Interestingly, we find that this causal impact is not observed immediately after the agreement is enacted but takes time, as observed in corresponding event studies. Our results hold to a broad array of robustness tests.
Bibliographical notePublisher Copyright: © 2020 CEPII (Centre d'Etudes Prospectives et d'Informations Internationales), a center for research and expertise on the world economy Copyright: Copyright 2020 Elsevier B.V., All rights reserved.
- Regional trade agreements