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Item Restricted Significance of AFTA as an agent of trade creation in the ASEAN region(2010-03) Duran, Kathleen Joy R.; Clarete, RamonAs time progresses, the ASEAN Free Trade Area (AFTA) is coming closer to its full realization. AFTA was created to promote integration of economies in the. Association of Southeast Asian Notions (ASEAN). The trade agreement was originally signed by the first ASEAN members-known as the ASEAN 6, composed of Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, and Thailand - on January 2002. Four more countries, known as the CLMV, -a grouping of Cambodia, Lao PDR, Myanmar, and Vietnam -later joined the ASEAN region, and hence, also became members of AFT A. The assimilation of the ASEAN countries I economies is expected to toke place through the reduction in tariff and non-tariff barriers who's full implementation is expected to take place in 201 0 for all ASEAN countries. With this, the study aims to ( 1) determine whether AFTA does encourage trade creation among its members, (2) assess AFTA1 s impact and significance from year 2003 to 2007, and (3) distinguish the significant trade determinants that affect trade within the ASEAN region. In order to accomplish these objectives, an augmented gravity model derived from Mokton (2009) and Hapsori and Mangunsong (2006) was generated. 15 countries were also included in the estimation aside from the 10 existing ASEAN members. Dummy variables such as common language, common border, landlocked countries, and island countries were also included. The estimation ecompasses annual trade among sample countries from 2003 to 2007. The results derived from the regression show that AFTA is indeed significant from year 2003 to 2006. As AFTA Is length of existence continue to grow, its impact continue to become stronger. However, externalities occuring in the ASEAN region cannot be measured by the AFT A dummy variable. Other factors significant to trade are GOP per capita of both trading countries, population level of both countries, common language spoken, and landlock-characteristic of countries.Item Restricted AFTA: a breakthrough towards a new millennium(1997-10) Ponio, Ben-Azel C. Jr.; Mijares, Francisco Y. IIIItem Restricted The AFTA effect: trade diversion or trade creation?(2010-03) Carawana, Desiree Mae B.This paper investigates the impact of the ASEAN Free Trade Area agreement to trade flows using the gravity model by a country panel data. Estimations report a positive correlation between GDPs and export flows. Also, countries with identical preferences exhibit higher trade than those with different ones. Moreover, result shows that trade creation is produced by AFTA among its members.