Buletin Ekonomi Moneter dan Perbankan
Vol 24 No 1 (2021)

TRADE CREATION AND TRADE DIVERSION EFFECTS: THE CASE OF THE ASEAN PLUS SIX FREE TRADE AREA

Rossanto Dwi Handoyo (Universitas Airlangga, Indonesia)
Lilik Sugiharti (Universitas Airlangga, Indonesia)
Miguel Angel Esquivias (Universitas Airlangga, Indonesia)

Article Info

Publish Date
14 Apr 2021

Abstract

This study examines whether trade agreements promoted under the ASEAN+6 over the period 2007-2017 supported trade creation and/or trade diversion effects within three export product groups, namely, manufactured goods, primary products, and natural resources-based goods. Using a gravity model, we note that primary products offer pure trade creation (greater intra-bloc and extra-bloc trade). Manufactured products experienced trade creation in intra-bloc and extrabloc exports, while natural resources-based goods show trade creation in intraregional exports and trade creation in imports from extra-bloc.

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Journal Info
Buletin Ekonomi Moneter dan Perbankan
Website

Abbrev

BEMP

Publisher

Bank Indonesia

Subject

Description

The Buletin Ekonomi Moneter dan Perbankan/Bulletin of Monetary Economics and Banking (BMEB) is an international peer-reviewed journal. This is a quarterly journal, published in January, April, July and August. The BMEB focuses on a broad range of topics covering monetary economics, banking, ...