Regional Trade Agreements and Export Trade Flows: Developing Economies and the Global Financial Crisis of 2007 to 2009

Abstract

ABSTRACT We explore the impact of the global financial crisis on export trade flows among member countries of MERCOSUR, NAFTA, ASEAN, Maghreb, and SACU. The analysis also focuses on the role of political rights, exchange rate, and export diversification as control mechanisms during the economic crisis. The results show differentiated patterns of trade creation across regions. We found an annual reduction (increment) in the gains of MERCOSUR and ASEAN (NAFTA, Maghreb, and SACU) members during the years after the global financial crisis. We also found that export concentration was the sole robust mechanism enhancing the volume of exports.