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.
Handoyo, Rossanto Dwi; Sugiharti, Lilik; and Esquivas, Miguel Angel
"TRADE CREATION AND TRADE DIVERSION EFFECTS: THE CASE OF THE ASEAN PLUS SIX FREE TRADE AREA,"
Bulletin of Monetary Economics and Banking: Vol. 24:
1, Article 3.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol24/iss1/3