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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