The role of network centrality in trade agreement formation

This paper examines the role of network centrality in bilateral FTA and RTA formation using data from 19602015.Degree Centrality (DC), which measures a country's direct trade connections, significantly increases the likelihood of forming new FTAs (ownFTA effect), while Flow Betweenness Centrality (FBC), which captures a country's role as an intermediary in trade networks, has a smaller impact (crossFTA effect).Economic size, geographic proximity, and institutional factors also influence FTA formation.Findings suggest that deeper agreements moderate network centrality effects, highlighting strategic trade policy implications.This research provides insights into trade integration dynamics and the evolving global trade network.