TRADE CREATION AND TRADE DIVERSION EFFECTS: THE CASE OF THE ASEAN PLUS SIX FREE TRADE AREA

Rossanto Dwi Handoyo (), Lilik Sugiharti () and Miguel Angel Esquivias
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Rossanto Dwi Handoyo: Universitas Airlangga
Lilik Sugiharti: Universitas Airlangga

Bulletin of Monetary Economics and Banking, 2021, vol. 24, issue 1, 93-118

Abstract: This study examines whether trade agreements promoted under the ASEAN+6 over the period 2007-2017 supported trade creation and/or trade diversion effects within three export product groups, namely, manufactured goods, primary products, and natural resources-based goods. Using a gravity model, we note that primary products offer pure trade creation (greater intra-bloc and extra-bloc trade). Manufactured products experienced trade creation in intra-bloc and extra-bloc exports, while natural resources-based goods show trade creation in intraregional exports and trade creation in imports from extra-bloc.

Keywords: Gravity model; Panel data; Trade creation and trade diversion effects; PMML; Technology intensity; Food; Manufacturing (search for similar items in EconPapers)
JEL-codes: C23 F10 F14 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:24:y:2021:i:1e:p:93-118

DOI: 10.21098/bemp.v24i1.1163

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