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Does AFTA Create or Divert Trade?

Author

Listed:
  • Cabalu Helen

    (Curtin University of Technology)

  • Alfonso Cristina

    (Consultant)

Abstract

In this article the changes in trade patterns introduced by the ASEAN Free Trade Area (AFTA) are examined. Variation in growth trends and the shift-and-share methodology are used to identify the impact of trade liberalization under AFTA on intra- and extra-regional commodity trade. Data at the commodity level are used and the results indicate that AFTA had trade creation effects, with little evidence of trade diversion.

Suggested Citation

  • Cabalu Helen & Alfonso Cristina, 2007. "Does AFTA Create or Divert Trade?," Global Economy Journal, De Gruyter, vol. 7(4), pages 1-18, December.
    • Handle: RePEc:bpj:glecon:v:7:y:2007:i:4:n:6
    DOI: 10.2202/1524-5861.1315
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    Cited by:

    1. Azhar A. KM & Elliott Rob J. & Liu Junting, 2012. "Product Quality, Trade, and Adjustment: The China-ASEAN Experience," Global Economy Journal, De Gruyter, vol. 12(2), pages 1-28, June.
    2. Sanjeev Vasudevan & M. Suresh Babu, 2021. "Global production sharing and trade effects: an analysis of Eurasian Economic Union," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 633-665, December.
    3. Wahyudi Setia Darma & Fithra Faisal Hastiadi, 2017. "Trade Creation and Trade Diversion Effects of the ASEAN-China Free Trade Agreement, ASEAN-Korea Free Trade Agreement, and ASEAN-India Free Trade Agreement Implementation on the Export of Indonesia's F," International Journal of Economics and Financial Issues, Econjournals, vol. 7(6), pages 51-58.
    4. Ward, Megan & Herr, Hansjörg & Pédussel Wu, Jennifer, 2020. "South Asian Free Trade Area and food trade: Implications for regional food security," IPE Working Papers 148/2020, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    5. Permani Risti, 2011. "The Impacts of Trade Liberalisation and Technological Change on GDP Growth in Indonesia: A Meta Regression Analysis," Global Economy Journal, De Gruyter, vol. 11(4), pages 1-30, December.

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