ABSTRACT
Introduction During the past two decades, the rapid proliferation of regional trade agreements (RTAs) has stimulated their economic analysis.1 Most previous papers focus on the static effects of RTAs such as trade creation and trade diversion, whereas the dynamic effects of RTAs are addressed in relatively few studies. However, technology and production know-how play a crucial role in developing new products and reducing costs. Thus, the enhancement of technology spillovers may be an important effect of RTAs.
