Economics at your fingertips  

Trade creation and the status of FTAs: empirical evidence from East Asia

Florian Mölders and Ulrich Volz

Post-Print from HAL

Abstract: East Asia has been considered a latecomer with respect to Free Trade Agreements (FTAs). Since the turn of the last century, however, FTAs with East Asian participation have seen an intra- and extra-regional expansion. Many trade initiatives have been proposed, negotiated or even implemented. This introduces interesting perspectives for the analysis of trade agreements regarding their anticipatory trade effects. This paper focuses on the trade impact of FTAs at different stages that East Asian economies participate in. The central part of this study is an econometric analysis that applies panel data to the gravity model of international trade flows. We augment the traditional model with variables to estimate trade effects of bilateral and multilateral agreements and year-to-year changes in the stages of their implementation. Our results reveal that there exist anticipatory effects preceding the actual implementation of bilateral FTAs with East Asian participation. Further, anticipation effects are larger for bilateral than for multilateral agreements, possibly because the realisation of bilateral agreements is considered more realistic.

Keywords: Free Trade Agreements; Trade; East Asia; Gravity model; Panel data; F13 (search for similar items in EconPapers)
Date: 2011-03-25
Note: View the original document on HAL open archive server:
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Published in Review of World Economics, Springer Verlag, 2011, 147 (3), pp.429-456. ⟨10.1007/s10290-011-0095-9⟩

Downloads: (external link) (application/pdf)

Related works:
Journal Article: Trade creation and the status of FTAs: empirical evidence from East Asia (2011) Downloads
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:

DOI: 10.1007/s10290-011-0095-9

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

Page updated 2020-11-05
Handle: RePEc:hal:journl:hal-00682332