We investigate the effects of 12 major Regional Trade Agreements (RTAs) on intraand extra-regional trade flows in member developing countries, both intra-RTA trade and the effect of RTAs on non-member trade over 1981~2008.We address and resolve statistical problems caused by logarithms, zero observations, and heteroskedasticity.Our regression results are not favorable to regional integration as a substitute for multilateral trade liberalization, although there are exceptions.Several RTAs fail to generate intrabloc trade creation.Seven of the 12 RTAs generate import trade diversion while most of the extra-bloc export dummies are not statistically significant.However, three of the five African RTAs in the sample increased intra-bloc trade.The differences in RTA performances are related to their implementation policies.
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