This study examines trade creation and trade diversion effects in the EUSAFTA using the standard gravity model of bilateral trade flows. The estimation of the gravity equation was carried out using the OLS analysis. In order to ascertain the overall trade creation and trade diversion effects explanatory variables such as GDP, distance and dummy variables were incorporated into the estimation equation to explain bilateral trade flows and exports respectively. The main focus was on the estimation of trade creation and trade diversion effects, resulting from participation in selected regional and preferential trade agreements like EU, COMESA, SACU and EUSAFTA. Additionally, the overall effects of regional and preferential trade agreements are positive and significant indicating that trade agreements, induce and generate huge trade volume among member countries. The trade creation effects of (SACU) were negative. This study demonstrates that participation in Regional and Preferential Trade Agreements stimulates trade between member countries. They also stimulate trade with non-member countries, perhaps as a result of an income effect.
| Identifer | oai:union.ndltd.org:LSU/oai:etd.lsu.edu:etd-01122006-152604 |
| Date | 23 January 2006 |
| Creators | Kwentua, Gregory Emeka |
| Contributors | John Westra, Wes Harrison Jr., P.Lynn Kennedy |
| Publisher | LSU |
| Source Sets | Louisiana State University |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lsu.edu/docs/available/etd-01122006-152604/ |
| Rights | unrestricted, I hereby certify that, if appropriate, I have obtained and attached herein a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to LSU or its agents the non-exclusive license to archive and make accessible, under the conditions specified below and in appropriate University policies, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. |
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