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The Early Effects of Preferential Trade Agreements on Intra-Regional Trade Within ASEAN+6 Members
- Journal of Southeast Asian Economies (JSEAE)
- ISEAS–Yusof Ishak Institute
- Volume 30, Number 3, December 2013
- pp. 237-249
- Article
- Additional Information
This study analyses the early effects of recent bilateral and regional Preferential Trade Agreements (PTAs) involving the ten-member Association of Southeast Asian Nations (ASEAN) grouping, as well as Australia, New Zealand, China, India, Japan and Korea. We utilize an augmented gravity model with this ASEAN+6 group of countries to examine the impact of membership in a bilateral versus a plurilateral PTA for the period of 1994 to 2006. The traditional gravity model is augmented by separately estimating the effects of bilateral memberships against plurilateral PTA memberships. Disaggregated country-by-country results indicate that plurilateral PTAs have had a more significant impact, relative to bilateral PTAs, in stimulating trade among the ASEAN+6 countries, in this initial period of new regionalism in Asia.