{"title":"Is NAFTA Trade-Creating or Trade-Diverting? A System GMM Approach","authors":"Yoon Heo, Nguyen Khanh Doanh","doi":"10.1111/1759-3441.12281","DOIUrl":null,"url":null,"abstract":"<p>This paper estimates the trade creation and trade diversion effects of the North American Free Trade Agreement (NAFTA) using a panel data set of 77 countries for the period 1989–2016. We found that the formation of NAFTA has resulted in both import trade creation and diversion. However, the magnitude of trade creation is higher than that of trade diversion. On the sectoral level, trade creation and diversion occur in both agricultural and non-agricultural imports, with trade creation exhibiting a higher magnitude. The magnitude of trade creation and diversion is found to be the highest for agricultural imports, which are followed by total and non-agricultural imports, respectively.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"39 3","pages":"222-238"},"PeriodicalIF":0.9000,"publicationDate":"2020-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/1759-3441.12281","citationCount":"5","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Papers","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/1759-3441.12281","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 5
Abstract
This paper estimates the trade creation and trade diversion effects of the North American Free Trade Agreement (NAFTA) using a panel data set of 77 countries for the period 1989–2016. We found that the formation of NAFTA has resulted in both import trade creation and diversion. However, the magnitude of trade creation is higher than that of trade diversion. On the sectoral level, trade creation and diversion occur in both agricultural and non-agricultural imports, with trade creation exhibiting a higher magnitude. The magnitude of trade creation and diversion is found to be the highest for agricultural imports, which are followed by total and non-agricultural imports, respectively.
期刊介绍：
Economic Papers is one of two journals published by the Economics Society of Australia. The journal features a balance of high quality research in applied economics and economic policy analysis which distinguishes it from other Australian journals. The intended audience is the broad range of economists working in business, government and academic communities within Australia and internationally who are interested in economic issues related to Australia and the Asia-Pacific region. Contributions are sought from economists working in these areas and should be written to be accessible to a wide section of our readership. All contributions are refereed.
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