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

Authors

Rossanto Dwi Handoyo, Universitas Airlangga, IndonesiaFollow
Lilik Sugiharti, Universitas Airlangga, IndonesiaFollow
Miguel Angel Esquivas, Universitas Airlangga, IndonesiaFollow

Document Type

Article

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.

Recommended Citation

Handoyo, Rossanto Dwi; Sugiharti, Lilik; and Esquivas, Miguel Angel (2021) "TRADE CREATION AND TRADE DIVERSION EFFECTS: THE CASE OF THE ASEAN PLUS SIX FREE TRADE AREA," Bulletin of Monetary Economics and Banking: Vol. 24: No. 1, Article 3.
DOI: https://doi.org/10.21098/bemp.v24i1.1163
Available at: https://bulletin.bmeb-bi.org/bmeb/vol24/iss1/3

First Page

93

Last Page

118

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Universitas Airlangga