Customs Union of Belarus, Kazakhstan and Russia: Trade Creation and Trade Diversion in Central Asia in 2010-2011

2012 ◽  
Author(s):  
Roman Mogilevskii
Keyword(s):  
Central Asia ◽  
Trade Diversion ◽  
Trade Creation ◽  
Customs Union

Comparative Advantage In The Southern Africa Customs Union (Sacu)

2013 ◽  
Vol 8 (2) ◽  
Author(s):  
Macleans Mzumara ◽  
Betty Mkwinda Nyasulu ◽  
Margaret Mzumara ◽  
Elias Kaunda
Keyword(s):  
South Africa ◽  
Comparative Advantage ◽  
Low Cost ◽  
Trade Diversion ◽  
Trade Creation ◽  
Customs Union ◽  
Product Lines ◽  
Common External Tariff ◽  
The Common ◽  
Narrow Base

The authors sought to find out whether the Southern African Customs Union (SACU) possesses comparative advantage. They found that South Africa has comparative advantage in the production of 727 product lines, Botswana in 268 product lines, Swaziland 243 product lines, Namibia 213 product lines and Lesotho 85 product lines. They also found that the highest degree of specialization in a particular product was observed in Lesotho in the production of cartridges for rivet with an average RCA index of 19215. The authors concluded that SACU has comparative advantage although such comparative advantage has a narrow base for a customs union (CU). Further it was concluded that due to imposition of the common external tariff (CET) in SACU and a narrow base of the products in which it has comparative advantage, it may be experiencing trade diversion rather than trade creation by replacing low cost producers outside SACU in favour of intra-SACU high cost producers. That South Africa, although not the least producer, is unfairly benefiting due to the imposition of CET which prevents other countries from exporting their products to Botswana, Swaziland, Namibia and Lesotho under the same conditions.  These countries are, therefore, disadvantaged. For this reason, the authors advocate communication at policy level, to facilitate expansion of SACU as means of narrowing trade diversion.

scholarly journals Economic Unions and the Gravity Model: Evidence from Eurasian Economic Union

2018 ◽  
Vol 8 (3) ◽  
pp. 90-98
Author(s):  
Robert Tumanyan
Keyword(s):  
Gravity Model ◽  
Trade Diversion ◽  
Minor Effect ◽  
Trade Creation ◽  
Customs Union ◽  
Eurasian Economic Union ◽  
Model Evidence ◽  
Economic Union ◽  
A Minor ◽  
Block Trade

The purpose of this study is to analyze trade creation and trade diversion effects in the Eurasian Economic Union (EEU), which is an evolution of regional trade agreements. The research will analyze intra-block trade flows and test trade creation and diversion in EEU determined by customs union agreements. Gravity model has been applied to annual bilateral export flows for EEU countries paired with a sample of 58 partner countries in the period of 2005-2016, using augmented gravity model with panel year fixed effect, this paper analyzes trade creation and diversion effects of EEU in general. The results are similar to other identical studies and suggest that EEU is mostly trade-diverting with a minor effect of trade creation.

scholarly journals The Trade Effects of a South Asian Customs Union: An Expository Study

1981 ◽  
Vol 20 (1) ◽  
pp. 61-80 ◽  
Author(s):  
M. Akhlaqur Rahman ◽  
Ayubur Rahman Bijuyan ◽  
Sadrel Reza
Keyword(s):  
Sri Lanka ◽  
South Asian ◽  
Trade Diversion ◽  
Trade Creation ◽  
Customs Union ◽  
Asian Countries ◽  
Trade Effects

The paper estimates the static trade effects of a customs union comprising Bangladesh, India, Nepal. Pakistan and Sri Lanka. Although these effects arc found to vary between countries, for the region as a whole the trade-creation effects appear to be greater than the trade-diversion effects. Despite their smallness, the direct ion of the change indicated by the static results seems encouraging to possible attempts at the formation of a customs union among South Asian countries.

scholarly journals Diversion et création d’échanges commerciaux dans le cadre du système canadien de préférences tarifaires

2009 ◽  
Vol 55 (1) ◽  
pp. 68-81
Author(s):  
Jaleel Ahmad
Keyword(s):  
Developing Countries ◽  
Product Category ◽  
Trade Diversion ◽  
Trade Flows ◽  
Trade Creation ◽  
Customs Union ◽  
Major Conclusion ◽  
Usual Assumption ◽  
Trade Preferences ◽  
Perfect Substitution

This paper explores in quantitative terms the potential effects on trade flows as a result of Canadian tariff preferences in favor of the developing countries instituted in 1974. The paper develops a model of trade creation and trade diversion due to preferences based on imperfect substitution, within each product category, between preference-granting, preference-receiving and non-preferred countries. This model depart from the usual assumption of the customs union theory that countries trade in perfect substitutes. The model is then applied to the 1978 trade date under BTN chapters 25 - 99 on a 4-digit classification. One major conclusion of the paper is that the assumption of perfect substitution tends to overstate the magnitude of trade creation and trade diversion, while the method based on less than perfect substitutability seems to offer more realistic estimates of the actual impact of trade preferences.

The Trade and Welfare Effects of Greek Membership in the EU

2002 ◽  
Vol 52 (4) ◽  
pp. 473-496
Author(s):  
Nicholas Tsounis
Keyword(s):  
Trade Diversion ◽  
Welfare Effects ◽  
Trade Creation ◽  
Customs Union ◽  
External Trade ◽  
Dynamic Effects ◽  
Total Trade ◽  
The Impact ◽  
Of Greece ◽  
The Eu

This paper presents quantitative estimates of the trade and welfare effects of the entry of Greece into the EU and presents a tool for assessing the impact of the Central and Eastern European Countries' accession to the EU. Both the static and the dynamic effects of the entry of Greece into the EU are examined. When looking at the static effects, it is shown that there was a “net”trade creation of about USD 1.6 billion, which accounted for approximately 4.4% of the GDP of the year before accession. It has also been found that 86% of the total trade creation was internal trade, while 84% of the entire trade diversion was external trade diversion, these being results that accord with the theory of the customs union. When we make an assessment of the dynamic effects, we can see that Greece's EU entry had mixed reactions in different sectors: for about two-thirds of the examined sectors we find that Greece's integration into the EU was desirable - in general, however, the integration indices found are close to being the same, thereby showing that the dynamic effects of the country's EU entry have been minimal.

Trade Creation or Trade Diversion in ASEAN and ASEAN+6 FTAs: Trade Indicators Approach

2015 ◽  
pp. 25-41
Author(s):  
Anh Tu Thuy ◽  
Ngoc Le Minh
Keyword(s):  
Comparative Advantage ◽  
Wheat Gluten ◽  
Free Trade Area ◽  
Private Investment ◽  
Trade Diversion ◽  
Trade Creation ◽  
Public And Private ◽  
Trade Area ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership

This paper makes use of two trade indicators, Revealed Comparative Advantage (RCA) and Regional Orientation (RO), to evaluate the economic impacts of the ASEAN Free Trade Area (The) and the Regional Comprehensive Economic Partnership (RCEP) on Vietnamese commodities at the Harmonized System (HS) 2-digit level. Several sectors in which Vietnam has revealed a comparative advantage, has benefited from the AFTA, and would continue to enjoy trade creation from the RCEP, are: Cereals (10), Salt, sulphur, earth, stone, plaster, lime and cement (25), Rubber (40), Knitted or crocheted fabric (60), etc. More importantly, the result provides a list of commodities in which Vietnam has a comparative advantage and only experiences trade creation when participating in the RCEP. These are: Milling products, malt, starches, inulin, wheat gluten (11), Vegetable plaiting materials, vegetable products not elsewhere specified (14), Wood and articles of wood, wood charcoal (44), etc. Findings also show commodities in which Vietnam has a comparative advantage; but are not well positioned in the RCEP market yet, e.g. Cereal, flour, starch, milk preparations and products (19) and Manmade staple fibres (55). If sufficient investment decisions and marketing strategies are applied to these commodities, they will well penetrate the RCEP market and bring trade creation and welfare improvement to Vietnam. Public and private investment should consider the above-mentioned commodities as targets to leapfrog the benefits of RCEP.

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