Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77456
Authors: 
Joshi, Vivek
Year of Publication: 
2010
Series/Report no.: 
HEID Working Paper 04/2010
Abstract: 
This paper investigates whether the India-Sri Lanka Free Trade Agreement (ISLFTA) has had trade creation or trade diversion effects on the rest of the World. The method used resembles the one used by Romalis (2005) to study NAFTA. In order to use the variations in tariff at the product level, we use six digit HS classification of products. We construct seven panel data sets for the period 1996 to 2006. We use the commodity and time variation in the tariff preferences allowed under ISLFTA, to identify its effect on sourcing of different products from 'control country' to ISLFTA region. Using fixed effects model we find that the ISLFTA has been minimally trade creating for control countries.
Subjects: 
free trade agreement
tariffs
trade creation
JEL: 
F10
F13
F15
Document Type: 
Working Paper

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