Economists Scott Baier and Jeffrey Bergstrand have pioneered a new methodological framework for analyzing the economic effects of international trade agreements.
Limited Previous Research
Until recently, economists made little progress in applying modern econometric tools to study the effects of trade agreements between countries.
New Methodological Framework
In a groundbreaking study, Scott Baier (Clemson University) and Jeffrey Bergstrand (University of Notre Dame) developed methodological frameworks that allow identifying the economic effects of such trade agreements.
Comprehensive Data Approach
Their approach is based on the use of large, comprehensive data sets spanning multiple decades and economies. This information enables controlling for difficult-to-observe factors such as lobbying or political will using statistical tools.
