Developing Countries Poised to Benefit Most from Regional Trade Agreements
This study looked at how different trade agreements affect the amount of trade between countries. They found that preferential trade agreements (PTAs) and agreements like GATT/WTO increased trade. Regional PTAs had a bigger impact on trade than interregional ones. Trade between countries in the Global South grew the most under PTAs. Bilateral agreements didn't have much effect on trade. Enlarging existing PTAs boosted trade more than agreements between two PTAs or a PTA and a country.