The Effects of Japanese EPA on Trade Flows,2000-2011: The Empirical Evidence in Gravity Analysis

Autor: Wei-Yu Peng, 彭煒育
Rok vydání: 2013
Druh dokumentu: 學位論文 ; thesis
Popis: 101
The globalization of regional economy integration has become a trend in the development of international economic these days, and it can be achieved by the Free Trade Agreements with other countries. This integration allows members of the region to virtually eliminate all tariff and non-tariff trade barriers, and will affect international trade flows, the allocation of international resources and change the pattern of the international industrial division. As new economic policy and strategy, Japan began to promote Economic Partnership Agreement (EPA) and Regional Trade Agreement (RTA) since 1990s. This paper determines the effect of regional economic integration on trade flows. We review the relevant literature on the gravity model, a model that can effectively analyze trade flows between two countries, and also the empirical analysis of the effects of Japanese EPA on trade flows, and we use the Gravity Model to carry on the empirical study. The results of the analysis revealed the Japanese EPA has positive effect on bilateral trade flows, which means regional economic integration clearly can bring trade creation. This model also analyzes the main factors affecting trade flows. We find that the main factors influencing trade flows between two countries are the GDP, distance and EPAs.
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