Philippine-Japan Economic Partnership Agreement (Pjepa)

The Regional Trade Agreement (RTA) is an agreement between two or more countries that facilitates trade by removing barriers to trade between the countries concerned (Kahouli and Maktouf 2015; Zhou 2015; Bilas and Franc 2016; Hayakawa et al. 2016). Free trade agreements remove restrictions on trade in goods and open markets for services and investment between the parties (Zhang et al. 2007). Almost all countries now participate as partners in at least one ATR (Zhou 2015). While many studies analyze the impact of trade on bilateral agreements with the standard gravity model, many of its restrictions can still be improved. The removal of different tariff positions with different discounts also cannot be taken into account in the standard gravity model. Chapter 1 (General Provisions), Article 1 (Goals) of the JPEPA is about the agreement. Hndi B, Maitah M, Mustofa J (2016) Trade effects of certain free trade agreements on agriculture: the case of some North African countries. Agris On-line Papers Econ Inform 8:39-50 Rahman K, Molla R, Murad M (2008a) Japan-Malaysia Free Trade Agreement: expectations and success.

J Comp Int Manag 11 (1):29-42 Liu X (2016) Trade Agreement and Economic Growth. South Econ J 82 (4):1374-1401 Naanwaab C, Diarrassouba M (2013) The impact of economic freedom on bilateral trade: a transnational analysis. Int J Bus Manag Econ Res 4(1):668 Park I, Park S (2011) Best Practices for regional trade agreements. Rev World Econ 147 (2): 249-268 The abolition of tariffs should strengthen trade between the two countries. The domestic treatment agreement gave Japanese investors the same treatment as Filipino investors in the Philippines and vice versa in Japan. These two (2) main pillars, as well as other provisions, should promote mutually beneficial economic activities between the two countries. Yoshimatsu H (2005) Japan`s Trade and Free Trade Agreement: Social Interests and Trade Policy. Asian Surv 45 (2): 258-278 Implementation of the JPEPA trade agreement has no significant impact on trade flows between the Philippines and Reyes et al. (2014) using different gravity models. The first took into account the economic size of countries, distance and other control variables such as language. Another set of gravity models included multilateral price variables. Sherif (2013) used the Cross Sectional Pooled Method (PCS) in the standard gravity model to assess the UAE`s bilateral trade with Bahrain and Qatar as a group.

Boxell (2015) used cross-validation k-times when studying the gravity model; This method provides a more robust model and prevents the model from being over-adjusted. Zhou M (2015) The effectiveness of regional trade agreements, 1958-2006: the impact of the creation of institutions on market expansion. Sociologists Forum 30 (3):721-742 Bui T (2008) Regional Integration and Long-Term Economic Growth: A Comparative Case Study of Vietnam and Mexico in the Asia-Pacific Region. J Int Bus Res 7 (3):1-26 Sanora R (2014) All economic freedom is not the same: proof of a gravity model. Contemp Econ Policy 32 (1): 30-41 Jalles J (2012) Opening, regional trade agreements and growth: evidence from Asia. Asian Economy J 26 (1): 63-85 The Japanese and Philippine governments reached a fundamental political agreement on the Japan-Philippines Economic Partnership Agreement (JPEPA) at the ASEAN summit in Laos on 29 November 2004. The agreement was then signed in Helsinki on 9 September 2006 and came into force on 11 December 2008. It was the first free trade agreement between the Philippines and Japan fourth. However, some studies suggest that regional trade agreements do not affect a nation`s growth (Jalles 2012) and that their effects are not clear (Jalles 2012; Reyes et al.

2014). In addition, it can have positive and negative effects on multilateral free trade (Bilas and Franc 2016).