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Trade Creation, Home-Market Effects under Regional Economic Integration

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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

Suggested Citation

  • Yo-Yi Huang & Deng-Shing Huang & Ching-lung Tsay, 2016. "Trade Creation, Home-Market Effects under Regional Economic Integration," IEAS Working Paper : academic research 16-A015, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    • Handle: RePEc:sin:wpaper:16-a015
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    References listed on IDEAS

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    More about this item

    Keywords

    Home-market Effect; Regional Economic Integration; PQML;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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