scholarly journals Heterogeneous Impacts of Free Trade Agreements: The Case of Japan

2019 ◽  
Vol 18 (2) ◽  
pp. 1-20
Author(s):  
Kenta Yamanouchi
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Fixed Effects ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Creation ◽  
Trade Data ◽  
Trade Partners

This paper investigates the trade creation effects of Japan's free trade agreements (FTAs) using aggregate trade data for the years 1996–2015. We estimate various specifications of a gravity model. Our main finding is that the effects of Japan's FTAs are not clearly observed when the gravity model is specified with three types of fixed effects (i.e., exporter-year fixed effects, importer-year fixed effects, and country-pair fixed effects). In fact, the effects of FTAs vary substantially among trade partners and around half of the FTAs increase Japan's trade values. Our results also suggest that FTAs with small trade partners tend to have large effects on Japan as well as other countries. Recently enforced FTAs, however, increase Japan's import values more rapidly.

scholarly journals The Impact of ASEAN-Korea Free Trade Agreements on Indonesian Export of Manufacturing Goods

ETIKONOMI ◽  
2018 ◽  
Vol 17 (2) ◽  
pp. 161-184
Author(s):  
Bernadheta Mia Tri Mareta
Keyword(s):  
Free Trade ◽  
Fixed Effects ◽  
Export Performance ◽  
Free Trade Agreements ◽  
Trade Diversion ◽  
Trade Agreements ◽  
Least Square ◽  
Gravity Models ◽  
Trade Creation ◽  
The Impact

Along with an attempt to promote the export performance of manufacturing goods, the number of investigation about the potential benefit or harm of free trade agreements is still weak in Indonesia. This paper highlights the effect of ASEAN-Korea Free Trade Agreement (AKFTA) on Indonesian export of manufacturing products since AKFTA as one of the significant initiatives in Southeast Asia is expected to boost Indonesian export. By using augmented gravity models with panel data, this paper investigates the presence of trade creation and trade diversion effects on Indonesian export with 20 trading partners, covering a 26-year period from 1990-2015. Fixed effects with least square dummy variable (LSDV) models are applied to tackle the endogeneity problems of FTA by controlling the unobserved heterogeneity. The results showed that trade diversion outweighs trade creation effects in almost all categories, confirming a decrease in export from member to non-member countries.DOI: 10.15408/etk.v17i2.7342

scholarly journals Trade, Climate and Energy: A New Study on Climate Action through Free Trade Agreements

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4363
Author(s):  
Christopher M. Dent
Keyword(s):  
Climate Change ◽  
Free Trade ◽  
Global Economy ◽  
International Political Economy ◽  
Positive Impact ◽  
Free Trade Agreements ◽  
Primary Source ◽  
Trade Agreements ◽  
Climate Action ◽  
Trade Partners

Efforts to tackle climate change are taking place on multiple fronts. This includes trade, an increasingly important defining feature of the global economy. In recent years, free trade agreements (FTAs) have become the primary mechanism of trade policy and diplomacy. This study examines the development of climate action measures in FTAs and discusses what difference they can make to tackling climate change. Its primary source research is based on an in-depth examination of FTAs in force up to 2020. This paper is structured around a number of research questions forming around three main inter-related areas of enquiry. Firstly, to what extent are these provisions in FTAs essentially derivative of energy’s connections with climate change, and thus part of a wider trade–climate–energy nexus? Secondly, what kinds of climate action are FTAs specifically promoting, and how effective a potential positive impact may we expect these to have? Thirdly, are certain climate action norms being promoted by trade partners in FTAs and if so, then who are the norm leaders, what is motivating them, and to what extent are they extending their influence over other trade partners? In addressing these questions, this study offers new insights and analysis regarding a potentially important emerging trend in the trade–climate–energy nexus. Its international political economy approach and latest empirical research also provide a further distinctive contribution to knowledge in this inter-disciplinary area, developing new comprehensions of the relationship between trade, climate action and energy.

scholarly journals LA INSERCIÓN COMERCIAL DE CHINA EN LATINOAMÉRICA

2019 ◽  
Vol 78 (310) ◽  
pp. 137
Author(s):  
Jorge Alberto López Arévalo ◽  
Óscar Rodil Marzábal
Keyword(s):  
Costa Rica ◽  
Free Trade ◽  
Fixed Effects ◽  
Bilateral Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Integration ◽  
Negative Effect ◽  
The Difference ◽  
Positive Effect

<p>Este trabajo estudia los intercambios bilaterales de China con México, Chile, Costa Rica y Perú desde la óptica del comercio intraindustrial durante 1995-2017. En particular, se analizan las diferencias en el patrón de inserción intraindustrial en un contexto marcado por la existencia (Chile, Costa Rica y Perú) o no (México) de acuerdos de libre comercio con China. El estudio se completa con un análisis econométrico (efectos fijos) de los determinantes del comercio intraindustrial. Los resultados muestran una inserción de bajo perfil intraindustrial, con la excepción de algunas partidas específicas relativas a productos eléctricos y de la industria automotriz. Por otro lado, se confirma el efecto positivo del tamaño de la economía, de la inversión extranjera directa y de la diferenciación de producto, así como negativo de la diferencia en el nivel de ingreso; mientras que existe una indefinición en el papel de los acuerdos de libre comercio con China.<br /><br /></p><p>THE TRADE INTEGRATION OF CHINA IN LATIN AMERICA</p><p> </p><p><strong>ABSTRACT</strong><br />This paper studies China’s bilateral trade with Mexico, Chile, Costa Rica and Peru from the perspective of intra-industrial trade during 1995-2017. In particular, the differences in the pattern of intra-industrial insertion are analyzed in a context characterized by the existence (Chile, Costa Rica and Peru) or not (Mexico) of free trade agreements with China. An econometric analysis (fixed effects) of the determinants of intra-industrial trade completes the study. The results show a low intra-industrial profile, except for some specific items related to electrical products and the automotive industry. The positive effect of the size of the economy, foreign direct investment and product differentiation is also confirmed, as well as the negative effect of the difference in income level. However, there is an undefined role for free trade agreements with China.</p>

scholarly journals Do Free Trade Agreements Affect Tariffs of Nonmember Countries? A Theoretical and Empirical Investigation

2018 ◽  
Vol 10 (3) ◽  
pp. 128-170 ◽  
Author(s):  
Kamal Saggi ◽  
Andrey Stoyanov ◽  
Halis Murat Yildiz
Keyword(s):  
Free Trade ◽  
Empirical Investigation ◽  
Free Trade Agreements ◽  
Trade Diversion ◽  
Trade Agreements ◽  
Terms Of Trade ◽  
External Trade ◽  
Trade Data ◽  
Industry Level ◽  
The World

We investigate the effects of free trade agreements (FTAs) on tariffs of nonmember countries. In our multi-country model, the formation of an FTA leads members to reduce their exports to the rest of the world. Such external trade diversion weakens the ability of nonmembers to manipulate their terms of trade vis-à-vis FTA members, a mechanism that induces them to lower their tariffs on FTA members. We empirically confirm this insight using industry-level trade data for 192 importing and 253 exporting countries, along with information on all FTAs formed in the world during 1989–2011. (JEL F13, F14)

scholarly journals TRADE CREATION DAN TRADE DIVERSION ANTARA INDONESIA DAN NEGARA-NEGARA ASEAN-KOREA

2018 ◽  
Vol 3 (1) ◽  
pp. 64-81
Author(s):  
Tresna Ritaningsih ◽  
Dedi Budiman Hakim ◽  
Sahara Sahara
Keyword(s):  
Free Trade ◽  
Regional Integration ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Diversion ◽  
Trade Agreements ◽  
Trade Creation ◽  
Implementation Phase ◽  
Trading Partners ◽  
The Impact

Indonesia has several free trade agreements with trading partners that aimed to eliminate tariff and non tariff trade barriers. One of the free trade agreements is ASEAN-Korea FTA. Trade agreement in goods in ASEAN-Korea FTA was agreed since 2007 and now it is entering the implementation phase. The objective of this research is to determine whether the ASEAN-Korea FTA would increase the trade flows between Indonesia and ASEAN-Korea’ countries by analyzing the impact of regional integration on trade creation and trade diversion. This research is utilized balance panel data including 13 countries from 1998-2012. The empirical result shows that all Indonesia's trading sectors experienced decline because of trade diversion and trade creation does not occur. Indonesia's import trading with the non-member countries of ASEAN-Korea is 68% lower than the existing trading. Key word: trade creation, trade diversion, free trade agreement, trade in goods

scholarly journals TRADE CREATION DAN TRADE DIVERSION ANTARA INDONESIA DAN NEGARA-NEGARA ASEAN-KOREA

2018 ◽  
Vol 3 (1) ◽  
pp. 64-81
Author(s):  
Tresna Ritaningsih ◽  
Dedi Budiman Hakim ◽  
Sahara Sahara
Keyword(s):  
Free Trade ◽  
Regional Integration ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Diversion ◽  
Trade Agreements ◽  
Trade Creation ◽  
Implementation Phase ◽  
Trading Partners ◽  
The Impact

Indonesia has several free trade agreements with trading partners that aimed to eliminate tariff and non tariff trade barriers. One of the free trade agreements is ASEAN-Korea FTA. Trade agreement in goods in ASEAN-Korea FTA was agreed since 2007 and now it is entering the implementation phase. The objective of this research is to determine whether the ASEAN-Korea FTA would increase the trade flows between Indonesia and ASEAN-Korea’ countries by analyzing the impact of regional integration on trade creation and trade diversion. This research is utilized balance panel data including 13 countries from 1998-2012. The empirical result shows that all Indonesia's trading sectors experienced decline because of trade diversion and trade creation does not occur. Indonesia's import trading with the non-member countries of ASEAN-Korea is 68% lower than the existing trading. Key word: trade creation, trade diversion, free trade agreement, trade in goods

scholarly journals Who benefits of trade with China? Examining the effects of free trade agreements on trade flow with China using an adjusted gravity model

2021 ◽  
Vol 14 (3) ◽  
pp. 9-25
Author(s):  
Sigurður Guðjonsson ◽  
Inga Minelgaite ◽  
Hrafnhildur Kristinsdóttir ◽  
Jelena Stankevičienė
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Trade Flow ◽  
Free Trade Agreements ◽  
Trade Agreements

Mass support for free trade agreements and factor endowment

2019 ◽  
Vol 74 (4) ◽  
pp. 537-558
Author(s):  
Kim-Lee Tuxhorn
Keyword(s):  
Free Trade ◽  
Developing Economies ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Skill Level ◽  
Factor Endowment ◽  
Highly Educated ◽  
Economic Preferences ◽  
Nationally Representative ◽  
Trade Partners

Does the factor endowment (FE) of trade partners influence mass support for free trade agreements (FTAs), and if so, how? Preference models based on factor endowment expect that individual attitudes toward trade partners should systematically vary by factors of endowment and respondents’ skill level. This paper provides the first systematic examination of the effect of trade partner’s FE on mass support for FTAs. Using a conjoint analysis design on a sample of respondents from developed and developing economies (the US and India), the findings show that respondents consistently favour trade partners with a highly educated workforce and a higher level of gross domestic product per capita. Moreover, preferences for these country attributes hold regardless of respondents’ skill level or their country’s FE. Data from a nationally representative survey on Canadian trade preferences offer additional corroborating evidence. Together, the findings offer limited support for economic preferences derived from factor endowment trade models, indicating that individuals, within and across countries, may share a common bias against trade with lesser-developed states.

scholarly journals Determinants of Trade Flows between Colombia and South Korea

2020 ◽  
Vol 39 (70) ◽  
Author(s):  
Sandra Daniela Ariza Marin
Keyword(s):  
Panel Data ◽  
South Korea ◽  
Gravity Model ◽  
Free Trade ◽  
Bilateral Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Asian Country ◽  
Trade Flows ◽  
Industrial Products

  This paper identifies the determinants of trade flows between Colombia and South Korea. For this purpose, the economic and commercial profile for both countries, bilateral trade and the signed FTA were analyzed. Likewise, a gravity model for total and sectorial trade with panel data for the period of 1993-2013 is applied, finding consistencies with the theoretical postulates. Variables such as income of the importer and exporter countries determine positive and significant bilateral trade, while the distance and landlocked decrease the likelihood of trade. Furthermore, the results of the gravity model indicate that the free trade agreements have no significant impact on trade of South Korea; however, from the analysis of the agreement it is considered that Colombian agricultural and agro-industrial products have potential opportunities to compete in the Asian country.

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