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        Forces Underlying Trade Integration in the APEC Region: A Gravity Model Analysis of Trade, FDI, and Complementarity

        ( Shigeru T. Otsubo ),( Tetsuo Umemura ) 세종대학교 경제통합연구소 (구 세종대학교 국제경제연구소) 2003 Journal of Economic Integration Vol.18 No.1

        Accompanying the wave of liberalization in motion since the mid 1980s, trade complementarity and its underlying structure of comparative advantage have started to dictate the directions of international trade flows. The vibrant FDI-export- led Asian growth has revealed the role of FDI as a financial gravity for trade integration in the APEC region. Analyses of forces underlying trade integration using trade gravity models with dummies for regional trading arrangements, augmented by the additions of trade complementarity and FDI flows as gravity variables of emerging significance, suggest that 1) APEC is more potent in the creation of intra-regional trade compared to other regional trading arrangements (RTAs); 2) intra-regional trade generation is much more significant in North-North and North-South RTAs as compared to that for the South-South RTAs; 3) trade complementarity is a significant determinant of the directions of trade, and its significance has grown since the mid 1980s with reductions in trade distortions; and 4) inward FDI is a significant determinant of the direction of intra-APEC trade transactions.

      • SCOPUSKCI등재

        Forces Underlying Trade Integration in the APEC Region : A Gravity Model Analysis of Trade, FDI, and Complementarity

        Otsubo, Shigeru T.,Umemura, Tetsuo 세종대학교 국제경제연구소 2003 Journal of Economic Integration Vol.18 No.1

        Accompanying the wave of liberalization in motion since the mid 1980s. trade complementarity and its underlysing structure of comparative advantage have started to dictate the directions of international trade flows. The vibrant FDI-export-led Asian growth has revealed the role of FDI as a financial gravity for trade integration in the APEC region. Analysies of forces underlying trade integration using trade gravity models with dummies for regional trading arrangements, augmented by the additions of trade complementarity and FDI flows as gravity variables of emerging significance, suggest that 1)APEC is more potent in the creation of intra-regional trade compared to other regional trading arrangements (RTAs); 2) intra-regional trade generarion is much more significant in North-North and North-South RTAs as compared to that for the Soyth-South RTAs; 3) thrade complementarity is a significant determinant of the directions of trade, and its significance has grown since the mid 1980s wiht reductions in trade distortions; and 4) inward FDI is a significant determinant of the direction of intra-APEC trade transactions.

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