While most of the studies that have been audited so far on this paper used the standard gravity model and the fish pseudo-probability model, very little reported data on trade volume was used in relation to the corresponding tariff reduction created by the bilateral trade agreement. Liu T (2007) The impact of regional trade agreements on trade. Chin Econ 40 (2): 70-96 As a result of the results, the removal of tariffs under the JPEPA has positive effects on trade in the form of an increase in exports from the Philippines to Japan. It should also be noted that the negative relationship between AT and TV has a delayed effect. The establishment of another trade agreement creates both a diversion of trade and a creation. In the case of JPEPA and ACJEP, where the Philippines and Japan are partners, Japan has increased its number of trading partners, leading to a shift in trade from the Philippines to other ASEAN countries. Girma S, Kneller R, Pisu M (2008) Creation, replacement and destruction in regional trade agreements: evidence on a microprudentian scale for the UK. Rev Int Econ 16 (1): 142-158 Small labour market openings for health workers in the Philippines are very limited (workers must learn Japanese, undergo equivalency tests, remain only for a limited period, etc.) and neglect the real potential for abuse of Filipino workers in Japan; fear that Japan could access and over-explore Philippine waters, ruining the livelihoods of small-scale fishermen; all the so-called benefits of increased exports of pineapples and bananas to Japan would indeed benefit companies such as Dole and Del Monte and their local trading partners who own and operate plantations in the Philippines – not to small Filipino or landless farmers; unconstitutional, to the extent that JPEPA allows Japanese companies to own land, manage schools and practice certain professions in the Philippines that the Philippine Constitution does not allow; the huge imbalances in the agreement, for example Japan.B excluded nearly 200 customs lines from the agreement, the Philippines only six; and the fact that JPEPA explicitly provides Japan with legal basis for landfilling toxic waste in the Philippines. The purpose of this document is to develop a predictive model using, among other things, a weighted average of disaggregated data on the tariff structure covered by the trade agreement and its changes over time that affect bilateral trade flows. This aspect of research and its potential to systematically close the gap or lack of a known political assessment of the impact of JPEPA on the Philippine economy could be the main contribution of this study. Applied to bilateral or multilateral trade, a country`s mass is generally represented by its economic size, in relation to its total production or gross domestic product (GDP), while its geographical distance measures the obstacle or opposition to trade with its trading partner.
The standard gravitational equation or trading model is a non-linear model consisting of three (3) explanatory variables, as covered by the following equation (Eita 2016); Benedictis and Taglioni 2011a, b): Benedictis and Taglioni (2011a, b) cited in their study the evolution of the business severity model. Jan Tinbergen, the first Nobel laureate in economics, borrowed in 1929, in his thesis entitled Minimum Problems in Physics and Economics Newton Gravitationsgesetz, to measure the intensity of bilateral trade flows. In short, the law determines the gravitational intensity between two (2) celestial bodies as directly proportional to the product of their masses and inversely proportional to their distance. In 1969, he developed his first econometric model of gravitational equation, applied to international trade when Tinberg`s interest shifted from physics to economics.