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This paper analyses determinants of trade among Regional Comprehensive Economic Partnership (RCEP) negotiating countries with focus on the border effect. An extended gravity model has been fitted to RCEP trade data. The empirical findings are generally consistent with the theory. We find evidence on the existence of the border effects within RCEP negotiating countries. The paper also shows that being a member of Association of Southeast Asian Nations (ASEAN) does improve trade flows of trading partners that may reinforce the central role of ASEAN in regional negotiation process of not only RCEP but also in the Trans-Pacific Partnership (TPP).

On the Border Effect in the Regional Comprehensive Economic Partnership (RCEP)