Trade Creation and Trade Diversion Effects of ASEAN-Japan Comprehensive Economic Partnership (AJCEP)
(2017) NEKH02 20171Department of Economics
- Abstract
- This paper examines the impact of the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) on import by studying both the trade creation and trade diversion effect. The standard gravity model is augmented and tested on a sample of 36 countries based on aggregated data from 2000 to 2015. To obtain consistent and efficient estimation results, unobserved multilateral resistance terms will be addressed and endogeneity bias in policy variables controlled by accounting for the unobservable endogeneity between the FTA variable and the error term. The estimations indicate that the impact of the AJCEP is not revealed. However, an export trade creation effect was found when the direction and magnitude of trade were considered. Finally, the results... (More)
- This paper examines the impact of the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) on import by studying both the trade creation and trade diversion effect. The standard gravity model is augmented and tested on a sample of 36 countries based on aggregated data from 2000 to 2015. To obtain consistent and efficient estimation results, unobserved multilateral resistance terms will be addressed and endogeneity bias in policy variables controlled by accounting for the unobservable endogeneity between the FTA variable and the error term. The estimations indicate that the impact of the AJCEP is not revealed. However, an export trade creation effect was found when the direction and magnitude of trade were considered. Finally, the results also imply that countries observe greater benefits in joining the FTA, the farther they are located from one another. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8925019
- author
- Szalanczi, Adrienn LU and Trinh, Melody
- supervisor
- organization
- course
- NEKH02 20171
- year
- 2017
- type
- M2 - Bachelor Degree
- subject
- keywords
- AJCEP, ASEAN, Gravity model, Panel data, Trade Creation, Trade Diversion
- language
- English
- id
- 8925019
- date added to LUP
- 2017-09-12 11:56:27
- date last changed
- 2018-12-03 13:36:03
@misc{8925019, abstract = {{This paper examines the impact of the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) on import by studying both the trade creation and trade diversion effect. The standard gravity model is augmented and tested on a sample of 36 countries based on aggregated data from 2000 to 2015. To obtain consistent and efficient estimation results, unobserved multilateral resistance terms will be addressed and endogeneity bias in policy variables controlled by accounting for the unobservable endogeneity between the FTA variable and the error term. The estimations indicate that the impact of the AJCEP is not revealed. However, an export trade creation effect was found when the direction and magnitude of trade were considered. Finally, the results also imply that countries observe greater benefits in joining the FTA, the farther they are located from one another.}}, author = {{Szalanczi, Adrienn and Trinh, Melody}}, language = {{eng}}, note = {{Student Paper}}, title = {{Trade Creation and Trade Diversion Effects of ASEAN-Japan Comprehensive Economic Partnership (AJCEP)}}, year = {{2017}}, }