Heterogeneous Impacts of Free Trade Agreements: The Case of Japan
Open accessAbstract
This paper investigates the trade creation effects of Japan's free trade agreements (FTAs) using aggregate trade data for the years 1996–2015. We estimate various specifications of a gravity model. Our main finding is that the effects of Japan's FTAs are not clearly observed when the gravity model is specified with three types of fixed effects (i.e., exporter-year fixed effects, importer-year fixed effects, and country-pair fixed effects). In fact, the effects of FTAs vary substantially among trade partners and around half of the FTAs increase Japan's trade values. Our results also suggest that FTAs with small trade partners tend to have large effects on Japan as well as other countries. Recently enforced FTAs, however, increase Japan's import values more rapidly.
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Cites
An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model
Yotov, Y. V., Piermartini, R., Monteiro, J.-A., & Larch, M. (2016) · doi:10.30875/abc0167e-en · Cited by 959 · see citing works
Heterogeneous effects of economic integration agreements
Baier, S. L., Bergstrand, J. H., & Clance, M. W. (2018) · Journal of Development Economics · doi:10.1016/j.jdeveco.2018.08.014 · Cited by 122 · see citing works
Flagged first, then by citations
Research works printed but not linked: 15
- Anderson, James E., and Eric van Wincoop. 2003. Gravity with Gravitas: A Solution to the Border Puzzle. American Economic Review 93(1):170-192.
- Arvis, Jean-François, and Ben Shepherd. 2013. The Poisson Quasi-Maximum Likelihood Estimator: A Solution to the "Adding Up" Problem in Gravity Models. Applied Economics Letters 20(6):515- 519.
- Baier, Scott L., and Jeffrey H. Bergstrand. 2007. Do Free Trade Agreements Actually Increase Mem- bers' International Trade? Journal of International Economics 71(1):72-95.
- Baier, Scott L., Yoto V. Yotov, and Thomas Zylkin. 2019. On the Widely Differing Effects of Free Trade Agreements: Lessons from Twenty Years of Trade Integration. Journal of International Economics 116(1):206-226.
- Chia, Siow Yue. 2013. The Emerging Regional Economic Integration Architecture in East Asia. Asian Economic Papers 12(1):1-37.
- Chia, Siow Yue. 2015. Emerging Mega-FTAs: Rationale, Challenges, and Implications. Asian Economic Papers 14(1):1-27.
- Cipollina, Maria, and Luca Salvatici. 2010. Reciprocal Trade Agreements in Gravity Models: A Meta- Analysis. Review of International Economics 18(1):63-80.
- Egger, Peter, and Mario Larch. 2008. Interdependent Preferential Trade Agreement Memberships: An Empirical Analysis. Journal of International Economics 76(2):384-399.
- Eicher, Theo S., Christian Henn, and Chris Papageorgiou. 2012. Trade Creation and Diversion Re- visited: Accounting for Model Uncertainty and Natural Trading Partner Effects. Journal of Applied Econometrics 27(2):296-321.
- Fally, Thibault. 2015. Structural Gravity and Fixed Effects. Journal of International Economics 97(1):76- 85.
- Head, Keith, and Thierry Mayer. 2014. Gravity Equations: Workhorse, Toolkit, and Cookbook. In: Handbook of International Economics, vol. 4, edited by Gita Gopinath, Elhanan Helpman, and Kenneth Rogoff, pp. 131-195. Amsterdam: Elsevier B.V. Head, Keith, Thierry Mayer, and John Ries. 2010. The Erosion of Colonial Trade Linkages After Inde- pendence. Journal of International Economics 81(1):1-14.
- Kohl, Tristan. 2014. Do We Really Know That Trade Agreements Increase Trade? Review of World Economics 150(3):443-469.
- Magee, Christopher S. P. 2008. New Measures of Trade Creation and Trade Diversion. Journal of Inter- national Economics 75(2):349-362.
- Santos Silva, J. M. C., and Silvana Tenreyro. 2006. The Log of Gravity. Review of Economics and Statis- tics 88(4):641-658.
- Yean, Tham Siew, and Andrew Kam Jia Yi. 2014. Re-examining the Impact of ACFTA on ASEAN's Exports of Manufactured Goods to China. Asian Economic Papers 13(3):63-82.
Cited by
Sorted by citations
Do Japan’s Free Trade Agreements Increase Its International Trade?
Ando, M., Urata, S., & Yamanouchi, K. (2022) · Journal of Economic Integration · doi:10.11130/jei.2022.37.1.1 · Cited by 16 · see citing works
“For instance, Yamanouchi (2019) conducted gravity model estimations to investigate the impact of Japan’s FTAs using trade data covering Japan’s trade and trade between third countries (third-country trade), and he found some differences.”
BackgroundSelf-citation
- Authors
- Yamanouchi, K.
- Affiliations
- Keio University (JP)
- Corresponding author
- Yamanouchi, Kenta
- ORCID
- Yamanouchi, Kenta
- Venue
- Asian Economic Papers
- Publisher
- MIT Press
- Published
- 2019-06
- Volume
- 18
- Issue
- 2
- Pages
- 1-20
- ISSN
- 1535-3516 (ISSN-L)
- 1536-0083
- OpenAlex
- W2952138889
- Cited by
- 18
- References
- 2
- Citations by year
- 2026: 2 · 2025: 3 · 2024: 2 · 2023: 4 · 2022: 6 · 2020: 1
- FWCI
- 3.77
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- Locations
- Asian Economic Papers (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Global Trade and Competitiveness
- Social Sciences › Business, Management and Accounting › Strategy and Management › International Business and FDI
- Keywords
- free trade agreements, heterogeneous effects, Japan, gravity model, trade partners, import value, trade liberalization
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
