Free trade areas and intra-regional trade: the case of ASEAN

Authors
Publication date 2009
Journal Singapore Economic Review
Volume | Issue number 54 | 3
Pages (from-to) 319-334
Number of pages 16
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract We study the effects of free trade areas on bilateral trade flows. We review and extend the previous empirical literature by embarking on the modelling of unobserved heterogeneity. We apply our preferred model to the case of the Asean Free Trade Area (AFTA). The estimation results suggest that there has been a positive effect of AFTA. This empirical finding is contrary to earlier estimation results, which are typically not so positive about AFTA. It is our impression that these earlier estimates on AFTA are confounded with the effects of unobserved determinants of trade.
Document type Article
Language English
Published at https://doi.org/10.1142/S0217590809003367
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