IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0770.html
   My bibliography  Save this article

A New Examination of the Impacts of Regional Trade Agreements on International Trade Patterns

Author

Listed:
  • Nguyen, Duc Bao

    (University of Bordeaux, GREThA-UMR CNRS 5113)

Abstract

This paper assesses the ex-post effects on the international trading system of eighteen pluri-lateral regional trade agreements (RTAs) by examining their impacts on intra-bloc trade and on the tendency of members to trade with the rest of the world. This study is based on a gravity model with a solid theoretical foundation involving Anderson and van Wincoop’s (2003) multilateral resistance terms. The model assesses 160 countries over a time period that extends from 1960 to 2014. Making use of the Poisson pseudo maximum likelihood (PPML) estimator and selecting the proper RTA variable and fixed effects settings, our analysis confirms the widespread trade-promoting effects of RTAs with mixed effects on extra-bloc trade. However, trade diversion in terms of bloc exports and imports are detected mostly in American and African trade agreements in many cases. By contrast, export and import creations are more prominent for RTAs in Europe and Asia.

Suggested Citation

  • Nguyen, Duc Bao, 2019. "A New Examination of the Impacts of Regional Trade Agreements on International Trade Patterns," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 34(2), pages 236-279.
    • Handle: RePEc:ris:integr:0770
    as

    Download full text from publisher

    File URL: http://www.e-jei.org
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bojan Matkovski & Danilo Đokić & Luna Vodana Jović, 2022. "How Cefta Influenced The Competitiveness Of Agri-Food Trade In The Western Balkans," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 67(235), pages 37-66, October –.
    2. Huria, Sugandha, 2020. "Gains from Free Trade Agreements: A Theoretical Analysis," MPRA Paper 109815, University Library of Munich, Germany.
    3. Fabien Candau & Geoffroy Guepie & Reine Kouakou, 2018. "In Gravity no Veritas: Dubious Trade Elasticiy and Weak Effects of Regional Trade Agreements in Africa," Working Papers hal-02625930, HAL.
    4. Koffi Dumor & Yao Li & Ma Yongkai & Enock Mintah Ampaw & Hafez Komla Dumor, 2022. "Evaluating the belt and road initiative effects on trade and migration: Evidence from the East African community," African Development Review, African Development Bank, vol. 34(1), pages 16-28, March.
    5. Juan René Rojas Rodríguez & Xenia Matschke, 2023. "The CAFTA-DR Free Trade Agreement — Analyzing its effects in a modern gravity framework," International Economics and Economic Policy, Springer, vol. 20(1), pages 27-93, February.
    6. Dmitriy Aleksandrovich Izotov, 2021. "Trade Integration in the Asia-Pacific Region: Decomposition of Effects," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 66-96.

    More about this item

    Keywords

    Gravity model; Regional trade agreements; Regional integration; Trade creation; Trade diversion;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0770. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.