Title: The Protectionism of Regional Trade Arrangements: Gravity Model
Abstract: This paper examines the trade creation and trade diversion between EU, APEC and NAFTA which many developing countries involved, using an expanded gravity model based on panel data. Resulting from these RTAs formation, the net trade effects of them are all trade diversion, though their intensity decreases in turn. Generally speaking, this paper brings evidence in favor of the idea that South-South RTAs or North-South RTAs are more attractive destination from trade diverting than other RTAs which included a good many of developed countries. Consequently, trade policy is obviously characterized by paralleled contents of intra-regional free trade while extra-regional protecting trade among RTAs.
Publication Year: 2007
Publication Date: 2007-01-01
Language: en
Type: article
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