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Journal of Economic Integration 2009 March;24(1) :116-134.
Impacts of Free Trade Agreement on US State Vegetable and Fruit Trade Flows

David KaremeraPaul Reinstra-MunnichaJoseph Onyeocha 

South Carolina State University
Copyright ©2009 Journal of Economic Integration

A few studies have shown that free trade agreements have affected the pattern of state exports. This paper examines the effects of free trade agreements on US state vegetable and fruit trade flows. We propose a single commodity gravity equation to overcome a common shortcoming of most gravity models, which are applied to aggregate trade flows. Our results show significant gross trade creation effects of NAFTA and APEC that are greater than the EU gross trade creation effects. In addition, our findings reveal that the Asian Pacific Rim region is a significant destination of many vegetables and fruits from US states.

JEL Classification: F13, F14, F15

Keywords: international trade | gravity models | free trade agreements | vegetables
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