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Does Similarity in Philippine Free Trade Agreements Matter in Trade?


This study proposes using text-of-trade analysis to understand the design of the Japan-Philippines Economic Partnership Agreement and the European Free Trade Association (EFTA). It examines the similarities between these agreements and other free trade agreements of Japan and EFTA member countries and how these similarities impact Philippine trade. The paper illustrates how text analysis can complement conventional methods, such as the gravity model and other econometric approaches, in assessing trade agreement impacts. The results reveal that similarities across trade agreements, whether at the document, chapter, or topic-specific provision levels, which strongly reference sustainable development, can influence and foster trade.


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Jun 29, 2024