eprintid: 30039 rev_number: 15 eprint_status: archive userid: 3114 dir: disk0/00/03/00/39 datestamp: 2021-06-09 13:04:14 lastmod: 2021-06-16 10:18:25 status_changed: 2021-06-09 13:04:14 type: workingPaper metadata_visibility: show creators_name: Cruzatti C., John title: Free Trade Agreements and Development: a Global Analysis with Local Data subjects: ddc-330 divisions: i-181000 keywords: FTAs, Human Development, Economic Activity, Inequality abstract: This paper analyzes the effects of Free Trade Agreements (FTAs) on various measures of local development in 207 countries over the 1990-2015 period. Using a Difference-in-Differences approach, I exploit spatial and time variation by comparing regions with (exogenously determinded) exploitable and non-exploitable land before and after FTAs are "activated". I show that FTAs have a limited yet positive impact on a region's human development (as measured by the Human Development Index). The results also indicate that this limited impact can be explained by the positive effects of Free Trade Agreements on economic activity (night lights and GDP), together with the lack of significant influence on patterns of inequality (distribution of night lights among population). Finally, I also show that FTAs' impacts on human development are stronger for urbanized regions. Conversely, there is neither clear evidence of a weaker positive effect if trade partners belong to the Global North nor if the agreements include arrangements beyond the elimination of tariffs and quotas. date: 2021-05 id_scheme: DOI id_number: 10.11588/heidok.00030039 schriftenreihe_cluster_id: sr-3 schriftenreihe_order: 0702 ppn_swb: 1760570184 own_urn: urn:nbn:de:bsz:16-heidok-300398 language: eng bibsort: CRUZATTICJFREETRADEA202105 full_text_status: public series: Discussion Paper Series / University of Heidelberg, Department of Economics volume: 0702 place_of_pub: Heidelberg pages: 66 citation: Cruzatti C., John (2021) Free Trade Agreements and Development: a Global Analysis with Local Data. [Working paper] document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/30039/1/Cruzatti_2021_dp702.pdf