Vu Quoc Huy, Vietnam Institute of Economics, Vietnam Academy of Social Sciences: This paper represents a serious attempt to estimate trade creation effects of Japan free trade agreements (FTAs), using data from 1996–2015 and a new structural gravity model with fixed effects. The novelty in this paper is the adaptation of the structural gravity model and using directional fixed effects to deal with unobservable multilateral resistance terms. The paper provides estimation for trade creations effects for all FTAs, all Japan FTAs, and then each individual Japan FTA. It shows that on average, Japan's FTAs show no clear trade creation effects, although there seems to be a great variation in trade creation effects among different FTAs: Those with small countries and those that have been signed more recently seem to have larger effects than the others. The author then goes further to suggest that large-scale multilateral trade agreements may not be...
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Summer 2019
June 01 2019
Comments on Heterogeneous Impacts of Free Trade Agreements: The Case of Japan
Online ISSN: 1536-0083
Print ISSN: 1535-3516
© 2019 by the Asian Economic Panel and the Massachusetts Institute of Technology
2019
Asian Economic Panel and the Massachusetts Institute of Technology
Asian Economic Papers (2019) 18 (2): 22–25.
Citation
Comments on Heterogeneous Impacts of Free Trade Agreements: The Case of Japan. Asian Economic Papers 2019; 18 (2): 22–25. doi: https://doi.org/10.1162/asep_a_00688
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