Signing Economic Integration Agreements has proliferated during last three decades. A country signs more and more agreements. Owning the agreements not only generates trade creation but also trade diversion. The diversion effect of Economic Integration Agreements (EIAs) on the probability of products survival and export growth in a market is found in current paper. | VNU Journal of Science Economics and Business Vol. 35 No. 5E 2019 12-25 Original Article Diversion Effect of Economic Integration Agreements Nguyen Thi Hoang Oanh Duong Thi Thuy Linh Thai Nguyen University of Technology Tich Luong Thai Nguyen City Thai Nguyen Vietnam Received 05 November 2019 Revised 20 December 2019 Accepted 26 December 2019 Abstract Signing Economic Integration Agreements has proliferated during last three decades. A country signs more and more agreements. Owning the agreements not only generates trade creation but also trade diversion. The diversion effect of Economic Integration Agreements EIAs on the probability of products survival and export growth in a market is found in current paper. Using the probit function for 149 countries in SITC 4-digit level from 1962 to 2000 we find the hazard rate of product ceasing increases if a country signs any other EIAs other than its partner both importer and exporter and the export growth decreases in the case of an importer owns any other EIA other than its partner. Keywords EIAs hazard rate importing outsiders exporting outsiders. 1. Introduction stable over time. Surprisingly the mean of the duration of a product is quite short. Over fifty The duration of a product is the length that percent of products are ceased in one year and the product serves uninterruptedly in a foreign 80 percent are ended in five years in my sample market. In other words the duration of a see Table 1 . Why does the duration of product shows for how long a product survives products serve shortly in the foreign markets in a market continuously. For instance if a Besedeš and Prusa 2006a drew a picture German car is exported to Vietnam of the duration of the . imports from 160 continuously in ten years then this trade countries during 1972-2001 1 . The products in relationship is ceased the duration of this car in their work are recorded by Tariff Schedule and the Vietnamese market is 10 years. The length Harmonized System .
