It has generally been argued that regional trade agreements among developing countries may induce potential adverse effects on trade patterns among RTA members and between them and third countries. Using an expanded gravity model this paper estimates for a number of RTAs among developing countries the gross trade creation and diversion effects resulting from RTA formation. This paper brings evidence in favor of the idea that South-South RTAs, and African RTAs in particular, are not made trade diverting than other RTAs. This evidence suggests that increased trade with both regional partners and third countries in the case of South-South RTAs might be explained by the removal of 'invisible' trade barriers as a result of trade facilitation measures favored by RTA formation.
- ISBN10 9211125448
- ISBN13 9789211125443
- Publish Date 1 March 2003
- Publish Status Active
- Publish Country US
- Imprint United Nations
- Format Paperback
- Pages 29
- Language English