On the trade-diversion effects of free trade agreements

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On the widely differing effects of free trade agreements: Lessons from twenty years of trade integration (2019, unknown): “As shown in Dai et al. (2014), internal trade is an important component of the overall reference group for estimating theoretically consistent effects of trade policies; thus, estimations that include internal trade generally obtain larger, more precisely estimated FTA effects.”
An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model (2016, background): “Second, it leads to the theoretically consistent identification of the effects of bilateral trade policies (Dai et al., 2014).”
Estimating the effects of non‐discriminatory trade policies within structural gravity models (2017, background): “…impact of trade liberalization within Canada, Yotov (2012) uses intra-national trade flows to resolve “the distance puzzle” in international trade, Dai et al. (2014) employ domestic sales in order to identify the impact of free trade agreements and, finally, Bergstrand et al. (2015) rely on…”