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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
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    References listed on IDEAS

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    1. Jamuna Agarwal, 1980. "Determinants of foreign direct investment: A survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), pages 739-773.
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    Cited by:

    1. 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, pages 1-30.
    2. Azhar A. KM & Elliott Rob J. & Liu Junting, 2012. "Product Quality, Trade, and Adjustment: The China-ASEAN Experience," Global Economy Journal, De Gruyter, pages 1-28.
    3. repec:eco:journ1:2017-06-7 is not listed on IDEAS

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