Park, Innwon; Park, Soonchan - In: Pacific Economic Review 13 (2008) 5, pp. 550-566
We estimate the investment creation and diversion effects of RTAs by using an extended gravity equation focusing on domestic reform as a commitment device for RTA membership. As a case study, we estimate the impact of proposed East Asian RTAs on inward FDI. We find that: (i) reform creating RTA...