Book Economic Partnership Agreement Mexico - Japan : analysis of trade creation and trade diversion 1999-2013

LUGO SÁNCHEZ , María Guadalupe

This document seeks to make an empirical analysis of the effects of the Economic Partnership Agreement between Mexico and Japan (EPAMJ) regarding trade creation and trade diversion. Trade flows between 23 countries for the period 1999 to 2013 are employed. The methodology is an ex post model that estimates trade creation or trade diversion using the gravitational equation. The results suggest that since its entry into force the EPAMJ has created trade for both nations. No evidence of trade diversion is found as results indicate that the EPAMJ has increased Mexico and Japan's trade with the other countries analyzed.

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