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Indo-Pacific cooperation: what do trade simulations indicate?

Author

Listed:
  • Mohammad Masudur Rahman

    (The University of Waikato)

  • Chanwahn Kim

    (Hankuk University of Foreign Studies)

  • Prabir De

    (Research and Information System for Developing Countries (RIS))

Abstract

This paper investigates the potential economic effect of ‘Indo-Pacific’ regional economic cooperation and compares with the extended CPTPP. The Computable General Equilibrium (CGE) results show that the quadrilateral alliance between the United States, Japan, Australia, and India shows although a substantial economic gain whilst South and East Asia join with the Indo-Pacific cooperation, the economic benefit would be enormous. The findings also indicate that South and East Asian improved trade facilitation could bring huge gain as a large part of Indo-Pacific trade has remained unrealized. The trade transaction cost is one of the major trading barriers prohibiting the growth of Indo-Pacific intra-regional trade. The study reinforces that improvement in infrastructure and connectivity that leads to less trade transportation costs should be a necessary step to realise Indo-Pacific trade potential.

Suggested Citation

  • Mohammad Masudur Rahman & Chanwahn Kim & Prabir De, 2020. "Indo-Pacific cooperation: what do trade simulations indicate?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-17, December.
    • Handle: RePEc:spr:jecstr:v:9:y:2020:i:1:d:10.1186_s40008-020-00222-4
    DOI: 10.1186/s40008-020-00222-4
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    References listed on IDEAS

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    Cited by:

    1. Shubhamitra Das, 2021. "Middle Power Cooperation in the Indo-Pacific: India and Australia at the Forefront," International Studies, , vol. 58(4), pages 513-529, October.
    2. Archana Srivastava & Somesh Kumar Mathur & Prabir De, 2023. "Ex-Ante Evaluation of India’s Trade Alliance with Indo-Pacific Region: A General Equilibrium Analysis," Foreign Trade Review, , vol. 58(2), pages 220-245, May.

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    More about this item

    Keywords

    Indo-Pacific; Trade; Regional integration; Trade facilitation; CGE;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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