Jaimovich, Dany - In: Applied Economics Letters 19 (2012) 6, pp. 579-583
This article analyses the spatial interdependence of Free Trade Agreements (FTAs) in a cross-section framework using the <italic>Contagion Index</italic> proposed by Baldwin and Jaimovich (2010). A Bayesian heteroskedastic probit model is estimated, where a spatial lag is built based on the <italic>Contagion Index</italic>,...