Bensassi, Sami

Marquez-Ramos, Laura

Martinez-Zarzoso, Inmaculada

According to recently developed models of trade based on imperfect com- petition and heterogeneous firms, lower trade costs increase bilateral trade, not only through a rise in the mean value of individual shipments (the intensive margin of trade), but also through an increase in the number of exporting firms (the extensive margin of trade). The main aim of this paper is to provide new empirical evidence on the effects of the Euro- Mediterranean (EuroMed) agreements on both margins of trad

Economic Integration and The Two Margins of Trade: An Application to the Euro-Mediterranean Agreements

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