Part Three: Econometric Specification

Why This Specification?

  • 1. Time Trends

  • 2. Importer/Exporter Fixed Effects Accounted For

  • 3. Singapore/New Zealand Bilateral Trade and FTA Controlled For

  • 4. Bilateral FTAs affect export and import behavior via price and income elasticities of export/import demand
  • 5. Counter-factual states: How would trade between Singapore and Japan progressed in the absence on the JSEPA? Controls for GATT/WTO membership are included.

The Agreement between Japan and the Republic of Singapore for a New-Age Economic Partnership Agreement (JSEPA)