The Potential Of The APEC Grouping To Promote Intra-Regional Trade In The Asia-Pacific Region

This study examines whether the proposed APEC free trade area would promote a high level of intra-APEC trade after its completion.   To achieve this goal, a modified gravity model is estimated for the thirteen APEC countries based on annual trade data from 1989 to 1998.   The results indicate that a high level of trade interdependence already exists to help promote the intra-APEC trade flows after its FTA completion.   The results also suggest that the APEC countries are more likely to trade with other member countries than with non-member countries