Abstract
This paper investigates how pre-existing preferential trade agreements (PTAs) dilute the trade creation effect and shield the trade diversion effect of new PTAs. Countries having pre-existing PTAs enjoy smaller gains in intra-bloc trade because of the dilution effect and experience smaller losses or even gains in extra-bloc trade because of the shielding effect. The findings support the proposition that PTAs could be used to fend off future trade diversion.
| Original language | English |
|---|---|
| Pages (from-to) | 221-238 |
| Number of pages | 18 |
| Journal | Review of International Economics |
| Volume | 23 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2015 May 1 |
| Externally published | Yes |
ASJC Scopus subject areas
- Geography, Planning and Development
- Development