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Hiroyuki Taguchi
''Trade creation and diversion effects of ASEAN-plus-one free trade agreements''
( 2015, Vol. 35 No.3 )
This article examined the trade creation and diversion effects of ASEAN-plus-one free trade agreements (FTAs) by estimating the gravity trade model for the recent two decades between 1993 and 2013. The estimation applied the panel-data with fixed effects to clear the FTA-endogeneity problem. The empirics showed that the trade creation effect in ASEAN-China FTA (ACFTA) was much larger than those in ASEAN-Korea FTA (AKFTA) and ASEAN-Japan FTA (AJFTA), and that the trade diversion effects were commonly negative in ACFTA, AKFTA and AJFTA as expected. The larger trade creation effect in ACFTA might come from the wider gap between the general tariff rate and the preferential tariff rate for ASEAN in China.
Keywords: trade creation and diversion effects, ASEAN-plus-one, free trade agreement
JEL: F1 - Trade: General
O2 - Development Planning and Policy: General
Manuscript Received : May 24 2015 Manuscript Accepted : Sep 02 2015

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