Studies examining the effect of regional trade agreements (RTAs) on trade find rather heterogeneous effects depending on the terms of the agreements, sectors and products covered, and the characteristics of the countries involved. The standard approach to estimating RTA effects does not...

We revisit the heterogeneous effects of regional trade agreements (RTAs) using a PPML gravity model and comparing apparel and total trade. The politically-sensitive apparel sector has specialized, usually restrictive, rules of origin (ROOs) clauses that vary considerably across RTAs. Our RTA...