Assessing the impact of the main East-Asian free trade agreements using a gravity model. First results

Laëtitia Guilhot ()
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Laëtitia Guilhot: LEPII-CNRS

Economics Bulletin, 2010, vol. 30, issue 1, 282-291

Abstract: The purpose of this article is to assess the impact of the three main East-Asian free trade agreements (ASEAN, ASEAN-China and ASEAN-South Korea) on intra-regional and extra- regional trade. To do this, we use a panel-data gravity model with three regional indicator variables. On the basis of the results, we conclude that the ASEAN agreement favours regional and multilateral trade, with the creation of exports to the rest of the world outweighing the diversion of extra-regional imports. The ASEAN-China and ASEAN-South Korea agreements have thus far not been shown to have an impact on East-Asian trade flows.

Keywords: Free Trade Agreement; East Asia; Gravity model (search for similar items in EconPapers)
JEL-codes: C2 F1 (search for similar items in EconPapers)
Date: 2010-01-20
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Citations: View citations in EconPapers (3)

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