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The Impact of Regional Trade Agreements on Trade: The Case of China

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  • Tianshu Liu

Abstract

This article studies the impact of regional trade agreements (RTAs) on China's exports and imports with others in seven RTAs. Gross domestic product (GDP), population, distance, land area, and exchangerate variables are studied as determinants in the gravity model, with the introduction of additional RTA variables to capture intraregional trade, extraregional trade, and outside-region trade. Distance and land area are estimated by using constant numbers, and adjusted by GDP share or import price index. The results show that the formation and implementation of regional trade agreements have positively or negatively affected China's trade with other trading partners when they are or are not a member of an RTA.

Suggested Citation

  • Tianshu Liu, 2007. "The Impact of Regional Trade Agreements on Trade: The Case of China," Chinese Economy, Taylor & Francis Journals, vol. 40(2), pages 70-96, April.
    • Handle: RePEc:mes:chinec:v:40:y:2007:i:2:p:70-96
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    Cited by:

    1. John S. Hill & Myung-Su Chae & Jinseo Park, 2012. "The Effects of Geography and Infrastructure on Economic Development and International Business Involvement," Journal of Infrastructure Development, India Development Foundation, vol. 4(2), pages 91-113, December.
    2. Dayang Affizzah Awang Marikan & Mohammad Affendy Arip & Jaber Khan & Hazlin Hamzah, 2020. "Malaysia and RCEP Countries: Gain or Pain?," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 10(3), pages 213-221, September.
    3. Al Faithrich C. Navarrete & Virgillio M. Tatlonghari, 2018. "An empirical assessment of the effects of the Japan–Philippine Economic Partnership Agreement (JPEPA) on Philippine exports to Japan: a gravity model approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-20, December.
    4. Kun‐Ming Chen & Meng‐Chia Tsai & Chia‐Ching Lin & Chaw‐hsia Tu, 2009. "Impact of Cross‐Strait Trade Liberalization: A Computable General Equilibrium Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(6), pages 106-122, November.

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