Countries don’t trade, firms do: A firm-level assessment of CETA

The impact of free trade agreements (FTAs) has been analysed by numerous empirical studies that focus on their effect on trade values. But what about the number of trading firms? Do FTAs lead to new firms becoming exporters or importers? Using data from the OECD-Eurostat Trade by Enterprise Characte...

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Autores: Cernat , Lucian, Esteve-Pérez , Silvio, Gil-Pareja , Salvador, Díaz Mora, María del Carmen
Tipo de recurso: artículo
Fecha de publicación:2025
País:España
Institución:Universidad de Castilla-La Mancha
Repositorio:RUIdeRA. Repositorio Institucional de la UCLM
OAI Identifier:oai:ruidera.uclm.es:10578/45305
Acceso en línea:https://doi.org/10.1016/j.iref.2025.104672
https://hdl.handle.net/10578/45305
Access Level:acceso abierto
Palabra clave:CETA
EU exporting and importing firms
Firm size
Free trade agreements
Gravity model
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spelling Countries don’t trade, firms do: A firm-level assessment of CETACernat , LucianEsteve-Pérez , SilvioGil-Pareja , SalvadorDíaz Mora, María del CarmenCETAEU exporting and importing firmsFirm sizeFree trade agreementsGravity modelThe impact of free trade agreements (FTAs) has been analysed by numerous empirical studies that focus on their effect on trade values. But what about the number of trading firms? Do FTAs lead to new firms becoming exporters or importers? Using data from the OECD-Eurostat Trade by Enterprise Characteristics dataset and estimating a structural gravity model, this paper examines the effect of the EU-Canada Comprehensive Economic and Trade Agreement (CETA) on the number of EU exporting and importing firms. When debating its future effects during the negotiations, the CETA agreement was the subject of both hope and criticism, including its potential negative effect on small firms. We explore the heterogeneous response of firms to CETA by sector, firm size and EU country. We find a positive but diverse response from EU firms to the opportunities offered by the CETA agreement. On average, CETA increased the number of EU exporting firms by around 11%. The largest increases were found in Spain and Lithuania (over 30%), while the lowest increases were in Italy (8.7%). The increase in the number of trading firms has been higher for small than for large firms. These findings underscore the importance of considering firm-level impacts in trade policy assessments.ELSEVIER202520252025info:eu-repo/semantics/articleapplication/pdfapplication/pdfhttps://doi.org/10.1016/j.iref.2025.104672https://hdl.handle.net/10578/45305reponame:RUIdeRA. Repositorio Institucional de la UCLMinstname:Universidad de Castilla-La ManchaInglésPID2021-122133NB-I002023-GRIN-34135CIPROM/2022/50MCIN/AEI/10.13039/501100011033/FEDER, EUinfo:eu-repo/semantics/openAccessoai:ruidera.uclm.es:10578/453052026-05-27T07:36:41Z
dc.title.none.fl_str_mv Countries don’t trade, firms do: A firm-level assessment of CETA
title Countries don’t trade, firms do: A firm-level assessment of CETA
spellingShingle Countries don’t trade, firms do: A firm-level assessment of CETA
Cernat , Lucian
CETA
EU exporting and importing firms
Firm size
Free trade agreements
Gravity model
title_short Countries don’t trade, firms do: A firm-level assessment of CETA
title_full Countries don’t trade, firms do: A firm-level assessment of CETA
title_fullStr Countries don’t trade, firms do: A firm-level assessment of CETA
title_full_unstemmed Countries don’t trade, firms do: A firm-level assessment of CETA
title_sort Countries don’t trade, firms do: A firm-level assessment of CETA
dc.creator.none.fl_str_mv Cernat , Lucian
Esteve-Pérez , Silvio
Gil-Pareja , Salvador
Díaz Mora, María del Carmen
author Cernat , Lucian
author_facet Cernat , Lucian
Esteve-Pérez , Silvio
Gil-Pareja , Salvador
Díaz Mora, María del Carmen
author_role author
author2 Esteve-Pérez , Silvio
Gil-Pareja , Salvador
Díaz Mora, María del Carmen
author2_role author
author
author
dc.subject.none.fl_str_mv CETA
EU exporting and importing firms
Firm size
Free trade agreements
Gravity model
topic CETA
EU exporting and importing firms
Firm size
Free trade agreements
Gravity model
description The impact of free trade agreements (FTAs) has been analysed by numerous empirical studies that focus on their effect on trade values. But what about the number of trading firms? Do FTAs lead to new firms becoming exporters or importers? Using data from the OECD-Eurostat Trade by Enterprise Characteristics dataset and estimating a structural gravity model, this paper examines the effect of the EU-Canada Comprehensive Economic and Trade Agreement (CETA) on the number of EU exporting and importing firms. When debating its future effects during the negotiations, the CETA agreement was the subject of both hope and criticism, including its potential negative effect on small firms. We explore the heterogeneous response of firms to CETA by sector, firm size and EU country. We find a positive but diverse response from EU firms to the opportunities offered by the CETA agreement. On average, CETA increased the number of EU exporting firms by around 11%. The largest increases were found in Spain and Lithuania (over 30%), while the lowest increases were in Italy (8.7%). The increase in the number of trading firms has been higher for small than for large firms. These findings underscore the importance of considering firm-level impacts in trade policy assessments.
publishDate 2025
dc.date.none.fl_str_mv 2025
2025
2025
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://doi.org/10.1016/j.iref.2025.104672
https://hdl.handle.net/10578/45305
url https://doi.org/10.1016/j.iref.2025.104672
https://hdl.handle.net/10578/45305
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv PID2021-122133NB-I00
2023-GRIN-34135
CIPROM/2022/50
MCIN/AEI/10.13039/501100011033/FEDER, EU
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv ELSEVIER
publisher.none.fl_str_mv ELSEVIER
dc.source.none.fl_str_mv reponame:RUIdeRA. Repositorio Institucional de la UCLM
instname:Universidad de Castilla-La Mancha
instname_str Universidad de Castilla-La Mancha
reponame_str RUIdeRA. Repositorio Institucional de la UCLM
collection RUIdeRA. Repositorio Institucional de la UCLM
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15.812455

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