Effects of ASEAN Free Trade Area (AFTA) on intra-regional trade flows: Evidence from automotive industry
This thesis analyses the impact of the ASEAN Free Trade Area (AFTA) on the intra-regional trade flows in the case of the automotive industry. By the gravity model and panel data approach at disaggregated level for 26 years from 1993 to 2018 between 870 pair countries, the study considered the com...
Saved in:
Main Author: | |
---|---|
Other Authors: | |
Format: | Theses and Dissertations |
Language: | English |
Published: |
2020
|
Subjects: | |
Online Access: | http://repository.vnu.edu.vn/handle/VNU_123/93327 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Institution: | Vietnam National University, Hanoi |
Language: | English |
Summary: | This thesis analyses the impact of the ASEAN Free Trade Area (AFTA) on the intra-regional
trade flows in the case of the automotive industry. By the gravity model and panel data
approach at disaggregated level for 26 years from 1993 to 2018 between 870 pair countries,
the study considered the common important issues of gravity model which lead to biased
estimation results in popular models. The most important method to control the effects of
unobservable variables due to multilateral resistance terms, endogeneity of trade policy and
non-discriminatory trade policy is applying high-dimensional fixed effects (HDFE).
Meanwhile, Poisson pseudo-maximum likelihood (PPML) model combine with HDFE
method performs better estimation results in the case a lot of zeros, heteroskedasticity issue.
Also, log-linear method in REGHDFE models to avoid the problem of functional
misspecification from PPML suggested that REGHDFE with only time effects is appropriate
model to examine the trade creation and trade diversion by AFTA dummies.
The reduction of tariff calculated by the difference between MFN and CEPT Scheme under
AFTA was also found to have a significant effect in increasing trade volume among AFTA
members. Moreover, a comparison of the magnitude of tariff elimination by individual has
resulted significantly different effects of tariff between original and new AFTA member. |
---|