The impact of the ACFTA on ASEAN-PRC trade: estimates based on an extended gravity model for component trade

Yu Sheng, Hsiao Chink Tang, Xinpeng Xu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

12 Citations (Scopus)

Abstract

This article uses an extended gravity model to examine the impact of the free trade agreement between the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China (PRC) on their trade flows and patterns. New determinants are utilized to capture the growing importance of global production sharing and intraregional trade in parts and components in East Asia. We show that the free trade agreement leads to substantially higher and more pronounced bilateral trade flows between ASEAN and the PRC than what a conventional gravity model predicts and the increase is concentrated in ASEAN countries that have stronger industrial linkages with the PRC.
Original languageEnglish
Pages (from-to)2251-2263
Number of pages13
JournalApplied Economics
Volume46
Issue number19
DOIs
Publication statusPublished - 1 Jul 2014

Keywords

  • China
  • gravity model
  • parts and components trade
  • Southeast Asia

ASJC Scopus subject areas

  • Economics and Econometrics

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