Rossanto Dwi Handoyo, - and Lilik Sugiharti, - and Miguel Angel Esquivias Padilla, - (2021) Trade Creation And Trade Diversion Effects: The Case Of The Asean Plus Six Free Trade Area. Bulletin of Monetary Economics and Banking, 24 (1). pp. 93-118. ISSN 1410 8046, e-ISSN: 2460 9196

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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.

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