TRADE CREATION AND TRADE DIVERSION EFFECTS: THE CASE OF THE ASEAN PLUS SIX FREE TRADE AREA

  • Rossanto Dwi Handoyo Universitas Airlangga, Indonesia
  • Lilik Sugiharti Universitas Airlangga, Indonesia
  • Miguel Angel Esquivias Universitas Airlangga, Indonesia
Keywords: Gravity model;, Panel data;, Trade creation and trade diversion effects;, PMML;, Technology intensity;, Food;, Manufacturing.

Abstract

This study examines whether trade agreements promoted under the ASEAN+6 over the period 2007-2017 supported trade creation and/or trade diversion effects within three export product groups, namely, manufactured goods, primary products, and natural resources-based goods. Using a gravity model, we note that primary products offer pure trade creation (greater intra-bloc and extra-bloc trade). Manufactured products experienced trade creation in intra-bloc and extrabloc exports, while natural resources-based goods show trade creation in intraregional exports and trade creation in imports from extra-bloc.

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Published
2021-04-14
How to Cite
Handoyo, R., Sugiharti, L., & Esquivias, M. (2021). TRADE CREATION AND TRADE DIVERSION EFFECTS: THE CASE OF THE ASEAN PLUS SIX FREE TRADE AREA. Buletin Ekonomi Moneter Dan Perbankan, 24(1), 93-118. https://doi.org/10.21098/bemp.v24i1.1163
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Articles