caa a22 4500 445859253 CHVBK 20180317145437.0 cr unu---uuuuu 170323e20110601xx s 000 0 eng 10.1007/s10290-010-0081-7 doi (NATIONALLICENCE)springer-10.1007/s10290-010-0081-7 Best practices for regional trade agreements [Elektronische Daten] [Innwon Park, Soonchan Park] Complicated web of hub-and-spoke type of overlapping free trade agreements (FTAs) can result in high costs for verifying rules of origin (RoO) and trade diversion or suppression effects. This paper attempts to provide best practices for regional trade agreements (RTAs) to enhance global free trade by mitigating these negative effects. By adopting a gravity regression analysis, we quantitatively estimate the trade creation and diversion effects of cumulated RoO (bilateral, diagonal, and full cumulation) for RTAs established under GATT Article XXIV and under the Enabling Clause. We find that (i) RTAs, in general, create trade among members and divert trade from nonmembers, whereby the net trade-enhancing effect is rather weak; (ii) RTAs should be established under the comprehensive GATT Article XXIV, rather than the piecemeal Enabling Clause; and (iii) full cumulation is the most optimal provision in terms of creating the most intra-bloc trade and diverting the least extra-bloc trade. Overall, we strongly suggest that RTAs should employ full cumulation of RoO under GATT Article XXIV. Kiel Institute, 2010 Regional trade agreements nationallicence Rules of origin nationallicence Gravity nationallicence GATT Article XXIV nationallicence Enabling Clause nationallicence Park Innwon Division of International Studies, Korea University, 5-1 Anam-Dong, 136-701, Seoul, Korea aut Park Soonchan Department of Economics and International Trade, Kongju National University, Kongju, Korea aut Review of World Economics Springer-Verlag 147/2(2011-06-01), 249-268 1610-2878 147:2<249 2011 147 10290 https://doi.org/10.1007/s10290-010-0081-7 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s10290-010-0081-7 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Park Innwon Division of International Studies, Korea University, 5-1 Anam-Dong, 136-701, Seoul, Korea aut NATIONALLICENCE 700 1- Park Soonchan Department of Economics and International Trade, Kongju National University, Kongju, Korea aut NATIONALLICENCE 773 0- Review of World Economics Springer-Verlag 147/2(2011-06-01), 249-268 1610-2878 147:2<249 2011 147 10290 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer