"Building" or "stumbling" blocks Analysis of the trade creation and trade diversion effect. The case of ASEAN-Korea free trade agreement (AKFTA)
Using trade data from the UNCTAD for 31 countries from 2000 to 2016, this study examines the success of the ASEAN-Korea FTA (AKFTA) by measuring the effect on import performance among member countries. A modified gravity model has been used to address both the issues of unobserved multilateral resistance terms and endogeneity biases to obtain consistent and efficient estimation results. The eviden