Analysis on the Relationship between Overlapping Free Trade Area and Multilateral Trade Agreement

Analysis on the Relationship between Overlapping Free Trade Area and Multilateral Trade Agreement

The overlapping free trade area (FTA), as one prominent phenomenon in the development of FTA after the 1990s, has influenced the multilateral trade system (MTS) greatly. This article has proved that the special advantages of spoke countries can bring about cohesive effect on the industries through adopting the analytical method of infinitely repeated game, and the spoke countries will face a di...

On the Relationship between Preferential and Multilateral Trade Agreements

In this paper we study the consequences of regional free trade agreements (FTAs) for global free trade. In the context of a three-country, two-good general equilibrium trade model, we derive stable Nash equilibria of two coalition formation games of trade liberalization: One in which FTAs are ruled out, and another in which countries have the option to form FTAs. Our analysis reveals that there...

The Role of Preferential Trade Agreement (PTA) between Iran and Malaysia their Intra industry Trade (IIT)

Impact of ASEAN : China free trade area on trade flows

This paper estimates the impact of the ASEAN-China Free Trade Agreement on the trade flows between China and the ASEAN countries. A gravity model with FTA specification is used to estimate the treatment effect of ACFTA. Since there are other unobserved variables that correlate with both the trade flows between China–ASEAN and the decision to form ACFTA, a cross-sectional OLS regression runs the...

Endogenous Free Trade Agreements and the Multilateral Trading System

I evaluate in this paper the impact of free trade areas (FTAs) on the world trading system. I use an oligopolistic-political-economy model where the external tariffs of FTA members, as well as the decision to form FTAs, are endogenously determined. In this context, I show that FTAs are primarily beneficial to the multilateral trading system. This conclusion is based, first, upon the finding tha...