ASSESSING TRADE BENEFITS OF A TTIP AND THE ROLE OF REGIONAL TRADE FREE BLOCKS ON SOUTH CAROLINA AGRICULTURAL EXPORTS: A STATIC AND DYNAMIC GRAVITY MODEL APPROACH

Abstract

This study provides an analysis of the effects of a potential transatlantic free trade agreement (TTIP) on the US state of South Carolina agricultural exports and trade. Trade benefits are evaluated within the framework of static and dynamic gravity models. The panel gravity models and probit equations that account for zero trades are estimated by methods that deal with various effects. The results show that dynamic system GMM is the preferred estimator. World country panel trade data from 1989 to 2018 were used. The findings reveal that the TTIP would increase South Carolina agricultural among member countries. The other major regional blocks including the EU, ASEAN, and MERCOSUR are shown to be significant destination markets for South Carolina agricultural and exports and trade.

Keywords

• agricultural production
• exports
• asean
• dynamic gravity models
• eu
• mercosur
• south carolina
• trade expansion