Economics at your fingertips  

Is NAFTA Trade‐Creating or Trade‐Diverting? A System GMM Approach

Yoon Heo and Nguyen Khanh Doanh

Economic Papers, 2020, vol. 39, issue 3, 222-238

Abstract: This paper estimates the trade creation and trade diversion effects of the North American Free Trade Agreement (NAFTA) using a panel data set of 77 countries for the period 1989–2016. We found that the formation of NAFTA has resulted in both import trade creation and diversion. However, the magnitude of trade creation is higher than that of trade diversion. On the sectoral level, trade creation and diversion occur in both agricultural and non‐agricultural imports, with trade creation exhibiting a higher magnitude. The magnitude of trade creation and diversion is found to be the highest for agricultural imports, which are followed by total and non‐agricultural imports, respectively.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0812-0439

Access Statistics for this article

Economic Papers is currently edited by Professor Guay Lim

More articles in Economic Papers from The Economic Society of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2021-05-12
Handle: RePEc:bla:econpa:v:39:y:2020:i:3:p:222-238