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Trade Creation (trade + creation)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting85%

Selected Abstracts

Trade Creation and Diversion Effects of Preferential Trade Associations on Agricultural and Food Trade

JOURNAL OF AGRICULTURAL ECONOMICS, Issue 1 2009
David Lambert
Q17; Q18; F13 Abstract Agricultural market distortions remain a major focus of contention in world trade negotiations. Estimates of the effects of liberalising current agricultural trade restrictions indicate an approximately $385 billion increase in global welfare, with the disproportionate share of the benefit being enjoyed by developing countries. In response to difficulties in adopting agricultural trade reforms, individual groups of countries have formed multiple bilateral and regional preferential trade agreements (PTA) to enhance trade among members. Few sectoral analyses exist of the effects on agricultural and food product trade of PTAs. This research uses a gravity model to isolate the effects of various PTAs on both intra- and extra-bloc agricultural and food product trade for three time periods: 1995, 2000 and 2004. Findings strongly support PTA benefits in terms of increased intra-bloc trade in both sectors. The findings also generally support trade creation in agricultural products. PTA membership was also associated with food trade creation in most cases, although diversion was observed for several associations composed primarily of developing countries. [source]

Agricultural trade in North America: Trade creation, regionalism and regionalisation

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 3 2003
Dragan Miljkovic
Trade creation in agricultural products is defined as a statistically significant positive break in the trend function of the growth in exports and imports between member countries. The present study attempts to determine the time of any break in the trend of real exports and imports between the Canada,USA Free Trade Agreement (CUSTA) and the North American Free Trade Agreement (NAFTA) member countries for the years 1980:I through 1999:II, and document the scale of the phenomenon. The present study finds trade creation only occurs in USA agricultural exports to Canada because of CUSTA. The results confirm the theory that the regionalism of NAFTA did not lead to regionalisation or an increasing share of intraregional international trade. [source]

The EU-Mercosol Free Trade Agreement: Quantifying Mutual Gains,

JCMS: JOURNAL OF COMMON MARKET STUDIES, Issue 5 2006
GERMÁN CALFAT
We identify trade in goods opportunities in a EU-Mercosul free trade area. Gains for Mercosul are rather concentrated, being mostly associated with a few agricultural commodities which face high protection barriers. EU gains are evenly spread, comprising a variety of market penetration possibilities. Trade deviation in the EU products is never higher than trade creation, confirming their international competitiveness and signalling that no great distortion of Mercosul's imports will take place. Balanced gains exist for both sides. For Mercosul, the agreement would act as a first serious trial for future liberalizations with other developed partners and as a warning on improvements in competitiveness. [source]

Trade Creation and Diversion Effects of Preferential Trade Associations on Agricultural and Food Trade

JOURNAL OF AGRICULTURAL ECONOMICS, Issue 1 2009
David Lambert
Q17; Q18; F13 Abstract Agricultural market distortions remain a major focus of contention in world trade negotiations. Estimates of the effects of liberalising current agricultural trade restrictions indicate an approximately $385 billion increase in global welfare, with the disproportionate share of the benefit being enjoyed by developing countries. In response to difficulties in adopting agricultural trade reforms, individual groups of countries have formed multiple bilateral and regional preferential trade agreements (PTA) to enhance trade among members. Few sectoral analyses exist of the effects on agricultural and food product trade of PTAs. This research uses a gravity model to isolate the effects of various PTAs on both intra- and extra-bloc agricultural and food product trade for three time periods: 1995, 2000 and 2004. Findings strongly support PTA benefits in terms of increased intra-bloc trade in both sectors. The findings also generally support trade creation in agricultural products. PTA membership was also associated with food trade creation in most cases, although diversion was observed for several associations composed primarily of developing countries. [source]

On the Welfare Implications of Customs Unions in the Presence of Finance Constraints

THE MANCHESTER SCHOOL, Issue 2 2001
Theodore Palivos
We examine the welfare effects of a customs union on a small monetary economy. The role of money is captured by a generalized cash-in-advance constraint which allows for non-uniform monetization across sectors. This generates a demand-side distortion which results in a discrepancy between the marginal domestic rate of substitution and the world price. We show that, depending on the economy's inflation rate and the difference between the existing and the optimal tariff rate, trade creation may reduce welfare while trade diversion may improve it. [source]

Agricultural trade in North America: Trade creation, regionalism and regionalisation

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 3 2003
Dragan Miljkovic
Trade creation in agricultural products is defined as a statistically significant positive break in the trend function of the growth in exports and imports between member countries. The present study attempts to determine the time of any break in the trend of real exports and imports between the Canada,USA Free Trade Agreement (CUSTA) and the North American Free Trade Agreement (NAFTA) member countries for the years 1980:I through 1999:II, and document the scale of the phenomenon. The present study finds trade creation only occurs in USA agricultural exports to Canada because of CUSTA. The results confirm the theory that the regionalism of NAFTA did not lead to regionalisation or an increasing share of intraregional international trade. [source]