A Bayesian spatial probit estimation of Free Trade Agreement contagion

This paper analyzes the spatial interdependence of Free Trade Agreements (FTAs) in a cross-section framework using the Contagion Index proposed by Baldwin and Jaimovich (2010). A Bayesian heteroskedastic probit model is estimated, where a spatial lag is built based on the Contagion Index, finding evidence of interdependence related with a domino-like effect. I compare the results with simple probit estimations and other spatial specifications.


Publication infos:
Geneva, The Graduate Institute of International and Development Studies, 2010
Publication year:
2010
Number of pages:
16 p.
Collection:
HEID Working Paper ; 7/2010



 Record created 2011-08-08, last modified 2019-09-03

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