RTAs' Proliferation and Trade‐diversion Effects: Evidence of the ‘Spaghetti Bowl’ Phenomenon

This paper investigates the trade‐diversion effects of regional trade agreements ( RTA s), so‐called spaghetti bowl phenomenon ( SBP ), in multilateral trade. The SBP is due to the proliferation of RTA s. Thus, I investigate the relationship between the number of RTA s concluded by a country and the additional trade value attributed to a RTA . Using bilateral trade data in a sample of 119 countries, from 1995 to 2012, my main finding reveals a negative trade effect between them, confirming the existence of SBP in multilateral trade. However, results could not conclude the evidence of a negative effect of overlapping RTA s, involving the existence of SBP , within North–North, North–South or South–South trade. But, the additional trade value attributed to a RTA concluded with EU countries or US seems to confirm significantly a trade‐diversion effect because of the number of RTA s signed by these countries.