Does AFTA Create or Divert Trade?

Helen Cabalu and Cristina Alfonso
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Helen Cabalu: Curtin University of Technology
Cristina Alfonso: Consultant

Global Economy Journal, 2007, vol. 7, issue 4

Abstract: In this article the changes in trade patterns introduced by the ASEAN Free Trade Area (AFTA) are examined. Variation in growth trends and the shift-and-share methodology are used to identify the impact of trade liberalization under AFTA on intra- and extra-regional commodity trade. Data at the commodity level are used and the results indicate that AFTA had trade creation effects, with little evidence of trade diversion.

Keywords: AFTA; trade creation; trade diversion (search for similar items in EconPapers)
Date: 2007

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Persistent link: http://EconPapers.repec.org/RePEc:bpj:glecon:v:7:y:2007:i:4:n:6

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