Can trade agreements curtail trade creation and prevent trade diversion?

Juyoung Cheong, Do Won Kwak, Kam Ki Tang

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper investigates how pre-existing preferential trade agreements (PTAs) dilute the trade creation effect and shield the trade diversion effect of new PTAs. Countries having pre-existing PTAs enjoy smaller gains in intra-bloc trade because of the dilution effect and experience smaller losses or even gains in extra-bloc trade because of the shielding effect. The findings support the proposition that PTAs could be used to fend off future trade diversion.

Original languageEnglish
Pages (from-to)221-238
Number of pages18
JournalReview of International Economics
Volume23
Issue number2
DOIs
Publication statusPublished - 2015 May 1
Externally publishedYes

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Fingerprint Dive into the research topics of 'Can trade agreements curtail trade creation and prevent trade diversion?'. Together they form a unique fingerprint.

  • Cite this