Zero trade flows can be the result of rounding errors, especially for small or distant countries. Zeros can also be missing observations that are incorrectly recorded as zero. These errors depend on the value of the covariates, resulting in inconsistency of the estimators. The Trade Promotion Authority aims to create opportunities for domestic workers, just as Roosevelt`s RTAA helped create jobs at the national level by trading in New Deal programs. The APT is an important part of trade negotiations because it allows Congress to determine the terms of trade negotiations, congressional consultations during negotiations, and legislative procedures for voting on agreements. In addition, it is important to address econometric problems arising from both heteroscedasticity and the existence of zero values in bilateral trade flows. This allows us to avoid other potential sources of bias in the estimation that might be present in the logarithmic-linear specification. This paper benefits from the recent computer development implemented by , which makes it possible to run the PPML estimator, including the three types of high-dimensional fixed effects needed to obtain unbiased and theoretically consistent estimates. Column 1 of Table 3 shows the estimates of gravitational Eq (2) with PPML. To save space, we report the two types of standard errors under each coefficient: grouped by pairs of countries (in parentheses) and multidirectional grouped standard errors (in parentheses). A comparison of these results with those offered in column 1 of Table 1 shows that the transition from OLS to PPML results in a loss of statistical significance of all variables. At this point, it should be noted that the loss of significance of the estimated coefficients of the PTAs and GATT variables when we move from OLS to PPML is consistent with the result found by .
In addition, as in , these authors also show insignificant results with regard to the trade impact of the euro when using PPML, but not when using OLS (including high-dimensional fixed effects in both cases). However, a notable difference between  and  articles in the use of OLS is that the former has a positive and significant effect on the euro, while the latter has a negative and significant impact. Mitaritonna C, Traore F (2017) Data available to measure African trade. IFPRI Working Paper, No. 1618, International Food Policy Research Institute (IFPRI) These agreements include regional agreements on tariffs and trade (GATT). In the case of Africa, mutual regional trade agreements include, for example, EAC, COMESA, CECAS, CENSAD, SADC, ECOWAS, EU EPA, PAFTA and PTN. Eighty years later, the tradition of the Mutual Trade Agreements Act continues in the form of the Modern Trade Promotion Authority (APT). President Obama, like President Roosevelt, has made trade policy a central part of his economic strategy to create jobs, promote growth and strengthen the middle class.
In 2013, U.S. exports reached a record high of $2.3 trillion, an increase accounting for one-third of America`s total economic growth. In addition, each additional $1 billion in exports has supported about 5,600 jobs in the United States, which pay an average of 13 to 18 percent more than non-export-related jobs. The Trade Promotion Authority is necessary to build on these achievements and extend the leadership of American companies into the 21st century. Bureau JC, Chakir R, Gallezot J (2006) The utilisation of EU and US trade preferences for developing countries in the agri-food sector. TRADEAG Working Paper, No. 193/2006 Bista R (2015) Aligning the wto`s impact on trade at wide and intensive margins. Int Econ J 29:231-257 The main instrument of the so-called “special and differential treatment” of developing countries was the Generalized System of Preferences (GSP), but there were many other non-reciprocal preferential trade agreements (NRPTA). Other non-reciprocal programmes include several EU-US initiatives (GSP+, ACP-EU Partnership Agreement, Everything But Arms Arrangement, Caribbean Basin Initiative, Andean Trade Preferences Act and African Growth and Opportunity Act) or the duty-free treatment that many other countries grant to least developed countries or developing countries in a particular region. The intellectual foundations of GATT”special and differential treatment” for developing countries date back to the 1950s. They were based on the balance of payments problems of developing countries, protection for young industry reasons and singer-Prebisch`s thesis on the secular decline in the terms of trade of developing countries ().
The list of developed countries includes countries that have never benefited from unilateral trade preferences: Australia, Belgium-Luxembourg, Denmark, Finland, Germany, France, Greece, Iceland, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Spain, Switzerland, Sweden, Sweden, United Kingdom and United States, as well as Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia Republic and Slovenia (after their accession to the Union) European union in 2004) and Bulgaria and Romania (after their accession to the European Union in 2007). As mentioned earlier, these include agreements in which one country unilaterally offers preferential tariffs to another country or group of countries. The country offering the preference raises or lowers import duties on imports from those countries without receiving the same preferences in return. These agreements generally focus only on trade in goods. The estimation results for the Eq (1) of structural gravity of the OLS are given in column 1 of Table 1. As is common in the literature, we report standard errors grouped by country pairs (in parentheses). In this specification, all time-invariant standard regressors of the gravitational equation (such as bilateral distance between countries or the use of a common language) are absorbed into pair-specific fixed effects. In addition, all exporter- and importer-specific time variant variables (such as GDP or theoretical conditions of multilateral resistance) are controlled for country-year fixed effects that vary over time for exporters and importers.
Before discussing the results, note that this is a linear regression (in the logs) and therefore does not allow the inclusion of zeros and, above all, can provide inconsistent parameter estimates due to the likely presence of heteroscedasticity in the trading data ( and ). As usual, the gravitational equation works well to explain a significant percentage of the overall variation in bilateral export flows. In addition, with the exception of the point estimate of the monetary union model, all estimated coefficients for economic integration agreements are positive and statistically significant at conventional levels. .