This paper examines the impact of the Thailand-Australia Free Trade Agreement (TAFTA) on bilateral merchandise trade flows between Australia and Thailand. Using aggregated data, an augmented gravity model is estimated in an attempt to quantify the trade creation and/or diversion effects of the agreement. The model includes 178 countries and is estimated using panel data over the period 1998 to ...

Regional Trade Agreements such as ASEAN Free Trade Area (AFTA) are expected to increase the trade flows among member countries through trade creation and trade diversion. This paper employs the gravity model using manufacturing trade data to analyse this hypothesised effect in a time-varying context. The estimation results suggest that AFTA has expanded the trade substantially. The trade creati...

Trade theories covering Preferential Trade Agreements (PTAs) are as diverse as the literature in search of their empirical support. To account for the model uncertainty that surrounds the validity of the competing PTA theories, we introduce Bayesian Model Averaging (BMA) to the PTA literature. BMA minimizes the sum of Type I and Type II error, the mean squared error, and generates predictive di...

Aim/Purpose – The study focuses on trade creation and diversion effect in the Economic Community of West African States (ECOWAS) regional agreement. It examines if ECOWAS agreement has brought about and/or before period ban certain items importation by Nigerian government as against terms 
 Methodology uses augmented gravity model. Estimations were carried out bilateral flows, within regio...

The number of Free Trade Agreements (FTA) based on each region or so called as Regional (RTA) has been increased rapidly after the World Organization (WTO) continues to increase from year year. This cause international trade are becoming autonomous. Indonesia's participation at ASEAN-India Agreement (AIFTA)greatly affect economy due strategic partnership which tied between Indonesia and India. ...

To explore the concept of connectivity and trade relativity (CTR), this paper presents a research model to illustrate: (1) the impact of shipping connectivity on two types of trade flows, and (2) the mediating effect of intra-regional trade (“intra-trade”) on the relationship between shipping connectivity and extra-regional trade (“extra-trade”). Understanding the relationships among shipping c...

w hether the united kingdom (uk) should remain in the european :union: (eu) or not has been a fiercely debated issue both before and after the referendum in the uk on june 23, 2016. the main purpose of this paper is to evaluate the pros and cons of the uk leaving the eu. it is concluded that if the uk leaves the eu, the resulting economic shock would risk adverse effects on macroeconomic variab...