Analysis of Free Trade Agreements Between European Union and Latin American Countries
|Author:||Bc. Martin Macháček|
|Year:||2019 - summer|
|Leaders:|| Ing. Vilém Semerák M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The aim of this paper is to examine if free trade agreements between Latin
American countries and the European Union have positive effect on trade flow
between the two. For this purpose, we use gravity models, specifically Ordinary Least Squares and Poisson Pseudo Maximum Likelihood estimations with
time and country-pair fixed effects. We apply these methods on five studied
countries: Argentina, Brazil, Chile, Colombia and Mexico.
The results show that the agreements with the European Union for the
first four mentioned countries have positive impact, although lower than the
impact of other agreements signed by these countries. For Mexico, the effect is
negative, which corresponds with the reports of the EU, which is negotiating
modernization of their agreement.