Multi-Level Trade Creation and Trade Diversion Analysis: Theoretical Framework
FEA Working Paper No. 2010-12
6 Pages Posted: 4 Nov 2009 Last revised: 7 Jan 2010
Date Written: November 3, 2009
This paper is interested to evaluate the trade creation and trade diversion effect under the application of multi-level analytical framework. The main idea is to present an alternative group of indicators such as the trade mass (Т), the intra-regional and extra-regional trade trend ratio (R1), the extra-regional and intra-regional trade trend ratio (R2) and the trade expansion coefficient (TEC). These indicators will study the trend and the possible trade creation and trade diversion effect of any country can experience from intra or extra regional level.
Keywords: Econographicology, Economic Integration
JEL Classification: B40, F15
Suggested Citation: Suggested Citation