Abstract
AbstractThis article examines the effects of regional trade agreements. The augmented gravity model of international trade is used to test for trade creation and diversion in the context of trade agreements in the Asia‐Pacific region. The results of the estimated model indicate that trade has increased among the members of AFTA and APTA but not among the AANZFTA members. Differences in the levels of development appear to have a significant impact on trade flows, suggesting that there can be no general presumption about the extent of trade creation and trade diversion.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.