02018cas a2200253 a 4500 AALejournalIMF015412 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513540443 1018-5941 BD-DhAAL BD-DhAAL Kpodar, Kangni. Does A Regional Trade Agreement Lessen or Exacerbate Growth Volatility? : An Empirical Investigation / Kangni Kpodar, Patrick Imam. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper assesses how regional trade agreements (RTAs) impact growth volatility on a worldwide sample of 170 countries with data spanning the period 1978-2012. Notwithstanding concerns that trade openness through RTAs can heighten exposure to shocks, in particular when it leads to increased product specialization, RTAs through enhanced policy credibility, improved policy coordination, and reduced risk of conflicts can ease growth volatility. Empirical estimations suggest the benefits outweigh the costs as RTAs are consistently associated with lower growth volatility, after controlling for trade openness and other determinants of growth volatility. Furthermore, regression results also suggest that countries that are more prone to shocks are more likely to join a RTA, in particular with countries with relatively less volatile growth, additionally enhancing the stabilization effect. Mode of access: Internet Imam, Patrick. IMF Working Papers; Working Paper ; No. 2015/177 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/177/001.2015.issue-177-en.xml IMF e-Library