Trade Creation, Home-Market Effects under Regional Economic Integration

Yo-Yi Huang, Deng-Shing Huang () and Ching-lung Tsay
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Yo-Yi Huang: Institute of Applied Economics, Natiional Taiwan University
Deng-Shing Huang: Institute of Economics, Academia Sinica, Taipei, Taiwan, https://www.econ.sinica.edu.tw/
Ching-lung Tsay: Department of Diplomacy and International Relations, Tamkang University, http://www.tidx.tku.edu.tw/contact/super_pages.php?ID=contact1&Sn=0

No 16-A015, IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan

Abstract: By conventional home-market effect (HME), a big economy with the advantage of big ‘domestic’ market size tends to have more than proportional share in the world export markets. By the common market integration, ASEAN as a whole shall form a large economy of more than 623 millions of population and 2.48 trillion US dollar of GDP. To test whether how effective of the HME for an integrated economy like ASEAN, the conventional gravity approach is adopted. Unlike the HME under regional economic integration (REI), the REI induced HME may not significant depending on the industries. JEL Classification: F12, F14, F15, O53

Keywords: Home-market Effect; Regional Economic Integration; PQML (search for similar items in EconPapers)
Pages: 20 pages
Date: 2016-11
New Economics Papers: this item is included in nep-int
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