Dai, Mian; Yotov, Yoto V.; Zylkin, Thomas - In: Economics Letters 122 (2014) 2, pp. 321-325
Trade-diversion effects of free trade agreements (FTAs) have not been thoroughly examined empirically. Using a novel empirical approach, we confirm that FTAs divert trade away from non-member countries and even more so from internal trade (domestic sales) in member countries.