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Does ASEAN Freer Trade Benefit Malaysia?

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  • Jamal Othman
  • Yaghoob Jafari

Abstract

This paper examines the impact of intra-ASEAN trade liberalization (AFTA) using a multicountry, computable general equilibrium model (GTAP Model) with special focus onMalaysia. The study considers the full elimination of intra-ASEAN import taxes and export subsidies. Results suggest that Malaysia's GDP would only increase marginally while the effects on the individual commodity sectors in the country differ substantially. Specifically, Malaysian processed food and textiles are anticipated to expand pronouncedly following the intra-ASEAN freer trade.

Suggested Citation

  • Jamal Othman & Yaghoob Jafari, 2010. "Does ASEAN Freer Trade Benefit Malaysia?," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 65(2), pages 191-214, June.
    • Handle: RePEc:usg:auswrt:2010:65:2:191-214
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    References listed on IDEAS

    as
    1. ACAR, Mustafa & ALPAY, Savas, 2009. "South – East Asian Integration in the Context of OIC: Implications of Free Trade among Malaysia, Indonesia and Bangladesh," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 24, pages 1-18.
    2. 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.
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    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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