On the trade-diversion effects of free trade agreements

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Abstract

Trade-diversion effects of free trade agreements (FTAs) have not been thoroughly examined empirically. Using a novel empirical approach, we confirm that FTAs divert trade away from non-member countries and even more so from internal trade (domestic sales) in member countries. © 2013 Elsevier B.V.

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Dai, M., Yotov, Y. V., & Zylkin, T. (2014). On the trade-diversion effects of free trade agreements. Economics Letters, 122(2), 321–325. https://doi.org/10.1016/j.econlet.2013.12.024

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