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On the trade-diversion effects of free trade agreements
Journal article   Peer reviewed

On the trade-diversion effects of free trade agreements

Mian Dai, Yoto V. Yotov and Thomas Zylkin
Economics letters, v 122(2), pp 321-325
Feb 2014

Abstract

Free trade agreements Gravity International trade Trade diversion
Trade-diversion effects of free trade agreements (FTAs) have not been thoroughly examined empirically. Using a novel empirical approach, we confirm that FTAs divert trade away from non-member countries and even more so from internal trade (domestic sales) in member countries. •We identify the trade diverting effects of Free Trade Agreements (FTAs).•We confirm that FTAs divert trade away from non-member countries.•We find that trade diversion is stronger for imports than for exports.•Diversion from internal trade is stronger than diversion from external trade.•Internal trade diversion is increasing in the number of FTAs.

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148 citations in Scopus

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#8 Decent Work and Economic Growth

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Domestic collaboration
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Web of Science research areas
Economics
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