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Trade Creation and Trade Diversion : New Empirical Results

Author

Listed:
  • Haveman, J-D
  • Hummels, D

Abstract

In recent years, there has been a rise in the popularity of preferential trading arrangements (PTA), and an equally precipitous rise in the number of papers studying the effects of regionalism. In this paper we assess the effect of preferential trading arrangements on the aggregate and bilateral trading patterns of member countries, and test for three effects of PTAs.

Suggested Citation

  • Haveman, J-D & Hummels, D, 1996. "Trade Creation and Trade Diversion : New Empirical Results," Papers 96-004, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
  • Handle: RePEc:fth:purkib:96-004
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    Citations

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    Cited by:

    1. Michaël Freudenberg & Guillaume Gaulier & Deniz Ünal-Kesenci, 1998. "La régionalisation du commerce international: une évaluation par les intensités relatives bilatérales," Working Papers 1998-05, CEPII research center.
    2. Russ, Katheryn N. & Swenson, Deborah L., 2019. "Trade Diversion and Trade Deficits: The Case of the Korea-U.S. Free Trade Agreement," Journal of the Japanese and International Economies, Elsevier, vol. 52(C), pages 22-31.
    3. Innwon Park & Soonchan Park, 2009. "Free Trade Agreements versus Customs Unions: An Examination of East Asia," Asian Economic Papers, MIT Press, vol. 8(2), pages 119-139, Spring.
    4. Pakasa Bary, 2015. "The Time-Varying Impact of Regional Trade Agreement: Evidence from ASEAN," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(9), pages 1061-1075, September.
    5. Keith Head & Thierry Mayer, 2002. "Effet frontière, intégration économique et “Forteresse Europe”," Economie & Prévision, La Documentation Française, vol. 0(1), pages 71-92.
    6. Juliette Milgram, 2003. "Quantitative Restrictions on Clothing Imports: Impact and Determinants of the Common Trade Policy Towards Developing Countries," Economic Working Papers at Centro de Estudios Andaluces E2003/04, Centro de Estudios Andaluces.
    7. José V. Blanes & Juliette Milgram Baleix, 2006. "The Free Trade Agreement Morocco-EU: a simulation of the impact on EU exports," ThE Papers 06/09, Department of Economic Theory and Economic History of the University of Granada..
    8. Magee, Christopher S.P., 2008. "New measures of trade creation and trade diversion," Journal of International Economics, Elsevier, vol. 75(2), pages 349-362, July.
    9. Indira M. Hapsari & Carlos Mangunsong, 2006. "Determinants of AFTA Members’ Trade Flows and Potential for Trade Diversion," ARTNeT Working Papers 21, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    10. Lionel Fontagné & Michaël Pajot & Jean-Michel Pasteels, 2002. "Potentiels de commerce entre économies hétérogènes : un petit mode d'emploi des modèles de gravité," Economie & Prévision, La Documentation Française, vol. 0(1), pages 115-139.
    11. Lionel Fontagne & Soledad Zignago, 2007. "A Re-evaluation of the Impact of Regional Agreements on Trade Patterns," Economie Internationale, CEPII research center, issue 109, pages 31-51.
    12. repec:dau:papers:123456789/10626 is not listed on IDEAS
    13. Selim Inançli & Haman Mahamat Addi, 2019. "Trade Creation and Trade Diversion Effects in the Economic Community of Central African States," African Development Review, African Development Bank, vol. 31(3), pages 307-317, September.
    14. Philippa Dee, 2005. "The Australia-US Free Trade Agreement: An Assessment," Asia Pacific Economic Papers 345, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    15. Ekaterina Y. ARAPOVA, 2017. "Ex-Post Analysis Of The Influence Of Tariff Liberalisation On Asean Exports," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 135-154.
    16. Indira M. Hapsari & Carlos Mangunsong, 2006. "Determinants of AFTA Members’ Trade Flows and Potential for Trade Diversion," Working Papers 2106, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    17. Florian Mölders & Ulrich Volz, 2011. "Trade creation and the status of FTAs: empirical evidence from East Asia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(3), pages 429-456, September.
    18. José Vicente Blanes Cristóbal & Juliette Milgram Baleix, 2006. "Impacto de la liberalización comercial de Marruecos y de la inmigración marroquí sobre las exportaciones de las CCAA españolas hacia Marruecos," Economic Working Papers at Centro de Estudios Andaluces E2006/14, Centro de Estudios Andaluces.
    19. Jean-Marc Siroën & Aycil Yucer, 2012. "The impact of MERCOSUR on trade of Brazilian states," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(3), pages 553-582, September.
    20. José Vicente Blanes Cristóbal & Juliette Milgram Baleix, 2006. "The Free Trade Agreement Morocco-EU: A simulation of the impact on bilateral flows," Economic Working Papers at Centro de Estudios Andaluces E2006/23, Centro de Estudios Andaluces.
    21. Ms. Patrizia Tumbarello, 2007. "Are Regional Trade Agreements in Asia Stumbling or Building Blocks? Implications for the Mekong-3 Countries," IMF Working Papers 2007/053, International Monetary Fund.

    More about this item

    Keywords

    INTERNATIONAL TRADE ; TRADE ; TRADE AGREEMENTS;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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