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 |
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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