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ASSESSING REGIONAL TRADE ARRANGEMENTS: ARE SOUTH–SOUTH RTAs MORE TRADE DIVERTING?

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Author Info
Lucian Cernat (United Nations Conference on Trade and Development)

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Abstract

It has generally been argued that regional trade agreements (RTAs) among developing countries may induce potential adverse effects on trade patterns among RTA members and between them and third countries. Using an expanded gravity model this paper estimates for a number of regional trade arrangements among developing countries the gross trade creation and diversion effects resulting from RTA formation. This paper brings evidence in favor of the idea that South-South RTAs, and African RTAs in particular, are not more trade diverting than other RTAs. This evidence suggests that increased trade with both regional partners and third countries in the case of South-South RTAs might be explained by the removal of “invisible” trade barriers as a result of trade facilitation measures favored by RTA formation.

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Paper provided by EconWPA in its series International Trade with number 0109001.

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Date of creation: 01 Oct 2001
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Handle: RePEc:wpa:wuwpit:0109001

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Related research
Keywords: South-South RTAs;

Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Prabir De, 2006. "Trade in Northeast Asia: Why do Trade Costs Matter?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  2. Chaaban, J. & Thomas, A., 2004. "A structural model for evaluating preferential trade agreements," Economics Working Paper Archive (Toulouse) 200415, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse). [Downloadable!]
  3. Jad Chaaban & Alban Thomas, 2008. "A Structural Model for Evaluating the Sector-specific Impacts of Preferential Trade Agreements," Journal of Industry, Competition and Trade, Springer, vol. 8(1), pages 73-88, March. [Downloadable!] (restricted)
  4. Anna Maria Mayda & Chad Steinberg, 2007. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," IMF Working Papers 07/40, International Monetary Fund. [Downloadable!]
    Other versions:
  5. Miriam Manchin & Annette O. Pelkmans-Balaoing, 2007. "Clothes without an Emperor: Analysis of the Preferential Tariffs in ASEAN," Development Working Papers 223, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
    Other versions:
  6. Agata Antkiewicz & John Whalley, 2005. "BRICSAM and the Non-WTO," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  7. Souleymane COULIBALY, 2006. "Evaluating the Trade and Welfare Effects of Developing RTAs," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 06.03, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
  8. Cardamone, Paola, 2007. "A survey of the assessments of the effectiveness of Preferential Trade Agreements using gravity models," Working Papers 7282, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
    Other versions:
  9. Coulibaly, Souleymane, 2007. "Evaluating the trade effect of developing regional trade agreements : a semi-parametric approach," Policy Research Working Paper Series 4220, The World Bank. [Downloadable!]
  10. Kokko, Ari & Mathä, Thomas & Gustavsson Tingvall, Patrik, 2006. "Regional Integration And Trade Diversion In Europe," EIJS Working Paper Series 231, The European Institute of Japanese Studies.
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