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On the trade-diversion effects of free trade agreements

Mian Dai, Yoto Yotov and Thomas Zylkin ()

Economics Letters, 2014, vol. 122, issue 2, 321-325

Abstract: Trade-diversion effects of free trade agreements (FTAs) have not been thoroughly examined empirically. Using a novel empirical approach, we confirm that FTAs divert trade away from non-member countries and even more so from internal trade (domestic sales) in member countries.

Keywords: International trade; Gravity; Free trade agreements; Trade diversion (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:122:y:2014:i:2:p:321-325

DOI: 10.1016/j.econlet.2013.12.024

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