Trade Creation and Trade Diversion of ASEAN’s Preferential Trade Agreements
This paper analyzes the effects of ASEAN Preferential Trade Agreements (PTAs) and employs the gravity model over 2007-2011. The regressions include all 6 ASEAN PTAs in a single regression which is run separately. Our pool regression results show that ASEAN members trade with each other at a level hi...
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| Format: | Article |
| Language: | English |
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The International Academic Forum
2018-03-01
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| Series: | IAFOR Journal of the Social Sciences |
| Subjects: | |
| Online Access: | https://iafor.org/journal/iafor-journal-of-the-social-sciences/volume-3-issue-1/article-1/ |
| _version_ | 1819056558324056064 |
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| author | Wanasin Sattayanuwat Nantarat Tangvitoontham |
| author_facet | Wanasin Sattayanuwat Nantarat Tangvitoontham |
| author_sort | Wanasin Sattayanuwat |
| collection | DOAJ |
| description | This paper analyzes the effects of ASEAN Preferential Trade Agreements (PTAs) and employs the gravity model over 2007-2011. The regressions include all 6 ASEAN PTAs in a single regression which is run separately. Our pool regression results show that ASEAN members trade with each other at a level higher than without preferential trade agreements. RCEP displays intra-bloc trade creation so as to ACFTA, AJCEP, and AIFTA. There have been stumbling-blocs in AANZFTA. Our results show that export trade diversion in AKFTA and most of the import extra-bloc trade dummies are not statistically significant. PTAs with higher external tariffs is likely to be associated with trade diversion. Also, the finding confirms that the results for the pooled regression and the results for individual regressions are different. Simultaneous estimation for all PTAs in a single regression enables us to avoid bias in the results by accounting for interactions among PTAs. |
| first_indexed | 2024-12-21T13:25:19Z |
| format | Article |
| id | doaj.art-fc6951456cd647968e5c072dde5e3fe8 |
| institution | Directory Open Access Journal |
| issn | 2187-0640 2187-0640 |
| language | English |
| last_indexed | 2024-12-21T13:25:19Z |
| publishDate | 2018-03-01 |
| publisher | The International Academic Forum |
| record_format | Article |
| series | IAFOR Journal of the Social Sciences |
| spelling | doaj.art-fc6951456cd647968e5c072dde5e3fe82022-12-21T19:02:28ZengThe International Academic ForumIAFOR Journal of the Social Sciences2187-06402187-06402018-03-0131519doi.org/10.22492/ijss.3.1.01Trade Creation and Trade Diversion of ASEAN’s Preferential Trade AgreementsWanasin Sattayanuwat0Nantarat Tangvitoontham1Srinakharinwirot University, ThailandSrinakharinwirot University, ThailandThis paper analyzes the effects of ASEAN Preferential Trade Agreements (PTAs) and employs the gravity model over 2007-2011. The regressions include all 6 ASEAN PTAs in a single regression which is run separately. Our pool regression results show that ASEAN members trade with each other at a level higher than without preferential trade agreements. RCEP displays intra-bloc trade creation so as to ACFTA, AJCEP, and AIFTA. There have been stumbling-blocs in AANZFTA. Our results show that export trade diversion in AKFTA and most of the import extra-bloc trade dummies are not statistically significant. PTAs with higher external tariffs is likely to be associated with trade diversion. Also, the finding confirms that the results for the pooled regression and the results for individual regressions are different. Simultaneous estimation for all PTAs in a single regression enables us to avoid bias in the results by accounting for interactions among PTAs.https://iafor.org/journal/iafor-journal-of-the-social-sciences/volume-3-issue-1/article-1/preferential trade agreementsgravity modelASEANPoisson pseudomaximum-likelihood (PPML) estimationpoisson pseudomaximum-likelihood (PPML) estimation |
| spellingShingle | Wanasin Sattayanuwat Nantarat Tangvitoontham Trade Creation and Trade Diversion of ASEAN’s Preferential Trade Agreements IAFOR Journal of the Social Sciences preferential trade agreements gravity model ASEAN Poisson pseudomaximum-likelihood (PPML) estimation poisson pseudomaximum-likelihood (PPML) estimation |
| title | Trade Creation and Trade Diversion of ASEAN’s Preferential Trade Agreements |
| title_full | Trade Creation and Trade Diversion of ASEAN’s Preferential Trade Agreements |
| title_fullStr | Trade Creation and Trade Diversion of ASEAN’s Preferential Trade Agreements |
| title_full_unstemmed | Trade Creation and Trade Diversion of ASEAN’s Preferential Trade Agreements |
| title_short | Trade Creation and Trade Diversion of ASEAN’s Preferential Trade Agreements |
| title_sort | trade creation and trade diversion of asean s preferential trade agreements |
| topic | preferential trade agreements gravity model ASEAN Poisson pseudomaximum-likelihood (PPML) estimation poisson pseudomaximum-likelihood (PPML) estimation |
| url | https://iafor.org/journal/iafor-journal-of-the-social-sciences/volume-3-issue-1/article-1/ |
| work_keys_str_mv | AT wanasinsattayanuwat tradecreationandtradediversionofaseanspreferentialtradeagreements AT nantarattangvitoontham tradecreationandtradediversionofaseanspreferentialtradeagreements |