IDEAS home Printed from https://ideas.repec.org/a/eri/review/6137-53.html
   My bibliography  Save this article

Economic Effects of Free Trade Agreements in Northeast Asia: CGE Analysis with the GTAP 9.0a Data Base

Author

Listed:
  • Enkhbayar Shagdar
  • Tomoyoshi Nakajima

    (Research Division, Economic Research Institute for Northeast Asia (ERINA)
    Research Division, Economic Research Institute for Northeast Asia (ERINA))

Abstract

Despite growing trade and economic relations among the countries in the Northeast Asian (NEA) region, there are only two bilateral free trade agreements in effect currently. The China–ROK Free Trade Agreement entered into force on 20 December 2015 and the Japan–Mongolia Economic Partnership Agreement (EPA) became effective on 7 June 2016. However, several EPAs and free trade agreements (FTAs) are under negotiation or have prospects to emerge among not only the countries in the region, but also surrounding regions and countries. An analysis of the economic effects of the ongoing FTA (China–Japan–Korea Trilateral Free Trade Agreement (CJK FTA)), and several other prospective FTAs—Northeast Asia Preferential Free Trade Agreement (NEA FTA); Northeast Asia plus the Eurasian Economic Union (EAEU) Preferential Free Trade Area (NEA+EAEU FTA); and Northeast Asia plus the Regional Comprehensive Economic Partnership (RCEP) plus the EAEU Preferential Free Trade Area (NEA+RCEP+EAEU FTA)—using the standard CGE Model and GTAP Data Base 9.0a revealed that all parties of the agreements will benefit from the formation of these free trade agreements, having welfare gains and real GDP expansions regardless of international capital mobility status—i.e. whether the capital is internationally mobile or not. Moreover, the results indicated that for the NEA region as a whole, the NEA FTA is preferable to the CJK FTA alone, and it would be even better off with the formation of wider free trade areas, such as with the other RCEP and EAEU members.

Suggested Citation

  • Enkhbayar Shagdar & Tomoyoshi Nakajima, 2018. "Economic Effects of Free Trade Agreements in Northeast Asia: CGE Analysis with the GTAP 9.0a Data Base," The Northeast Asian Economic Review, ERINA - Economic Research Institute for Northeast Asia, vol. 6(1), pages 37-53, July.
    • Handle: RePEc:eri:review:6:1:37-53
    as

    Download full text from publisher

    File URL: https://www.unii.ac.jp/erina-unp/archive/wp-content/uploads/2018/08/naer61-3_tssc.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    2. Sh. Enkhbayar & Tomoyoshi Nakajima, 2013. "Impacts of Mongolian FTAs with the Countries in Northeast Asia: CGE Analysis with the GTAP 8 Data Base," The Northeast Asian Economic Review, ERINA - Economic Research Institute for Northeast Asia, vol. 1(2), pages 43-67, December.
    3. Enkhbayar Shagdar & Otgonsaikhan Nyamdaa, 2017. "Impacts of Import Tariff Reforms on Mongolia's Economy: CGE Analysis with the GTAP 8.1 Data Base," The Northeast Asian Economic Review, ERINA - Economic Research Institute for Northeast Asia, vol. 5(1), pages 1-25, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Davaajargal Lkhagva & Zheng Wang & Changxin Liu, 2019. "Mining Booms and Sustainable Economic Growth in Mongolia—Empirical Result from Recursive Dynamic CGE Model," Economies, MDPI, vol. 7(2), pages 1-16, May.
    2. Nugroho, Anda & Widyastutik, & Irawan, Tony & Amaliah, Syarifah, 2021. "Does the US–China trade war increase poverty in a developing country? A dynamic general equilibrium analysis for Indonesia," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 279-290.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Enkhbayar Shagdar & Tomoyoshi Nakajima, 2020. "Economic Impacts to Be Brought by the DPRK's Return to International Society: CGE Analysis with the GTAP 9A Data Base," Discussion papers 2003, ERINA - Economic Research Institute for Northeast Asia.
    2. Enkhbayar Shagdar & Nakajima Tomoyoshi, 2018. "Economic Effects of Free Trade Agreements in Northeast Asia: CGE Analysis with the GTAP 9.0a Data Base," The Northeast Asian Economic Review, ERINA - Economic Research Institute for Northeast Asia, vol. 6(1), pages 37-53, July.
    3. Enkhbayar Shagdar & Tomoyoshi Nakajima, 2018. "Economic Effects of the USA - China Trade War: CGE Analysis with the GTAP 9.0a Data Base," Discussion papers 1806e, ERINA - Economic Research Institute for Northeast Asia.
    4. Enkhbayar Shagdar & Tomoyoshi Nakajima, 2018. "Economic Effects of the USA - China Trade War: CGE Analysis with the GTAP 9.0a Data Base," Discussion papers 1806, ERINA - Economic Research Institute for Northeast Asia.
    5. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    6. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    7. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    8. Jiang, Tingsong, 2003. "The Impact of China's WTO Accession on its Regional Economies," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    9. Knut Einar Rosendahl & Jon Strand, 2011. "Carbon Leakage from the Clean Development Mechanism," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 27-50.
    10. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    11. Adams, Philip D., 2008. "Insurance against Catastrophic Climate Change: How Much Will an Emissions Trading Scheme Cost Australia?," Conference papers 331770, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    13. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.
    14. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    15. Dhoubhadel, Sunil P. & Taheripour, Farzad & Stockton, Mathew C., 2016. "Livestock Demand, Global Land Use, and Induced Greenhouse Gas Emissions," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235271, Agricultural and Applied Economics Association.
    16. Federico Perali & Stefania Lovo, 2009. "Counterfactual analysis using a regional dynamic general equilibrium model with historical calibration," Working Papers 58/2009, University of Verona, Department of Economics.
    17. Mai, Yinhua, 2008. "Removing border protection on wheat and rice: effects on rural income and food self-sufficiency in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-19.
    18. Lucian Cernat & Sam Laird & Alessandro Turrini, 2003. "How Important are Market Access Issues for Developing Countries in the Doha Agenda?," International Trade 0302004, University Library of Munich, Germany.
    19. Palatnik, Ruslana R. & Kan, Iddo & Rapaport-Rom, Mickey & Ghermandi, Andrea & Eboli, Fabio & Shechter, Mordechai, 2011. "Land transformation analysis and application," Conference papers 332155, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Yoonkyo Cho & Taehwan Kim & Jaewhak Roh, 2021. "An analysis of the effects of electronic commerce on the Korean economy using the CGE model," Electronic Commerce Research, Springer, vol. 21(3), pages 831-854, September.

    More about this item

    Keywords

    Free trade; CGE analysis;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eri:review:6:1:37-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hirofumi Arai (email available below). General contact details of provider: https://edirc.repec.org/data/erinajp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.