IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/332499.html
   My bibliography  Save this paper

Impact of Liberalization and Improved Connectivity and Facilitation in ASEAN

Author

Listed:
  • Itakura, Ken

Abstract

This study attempts to evaluate the potential economic effects of liberalization and improved connectivity and facilitation of trade in goods and services among the ASEAN member states (AMSs) by applying economy-wide simulation analysis based on a recursively dynamic computable general equilibrium (CGE) model. We conduct a set of simulations to capture the effects of establishing free trade agreements (FTAs) in which the AMSs participate. Three key components affecting the impacts of FTAs are reduction of tariffs on goods, lowering of barriers to trade in services, and saving time-costs arising from logistics. Simulation results revealed that reducing trade barriers has a significantly positive impact on economic welfare. Although there are differences in the magnitude of positive contributions to welfare, all of the FTAs in which the AMSs participate tend to raise welfare. Among the FTAs examined in this study, the Regional Comprehensive Economic Partnership (RCEP) leads to the largest positive effects on real GDP for most of the AMSs.

Suggested Citation

  • Itakura, Ken, 2014. "Impact of Liberalization and Improved Connectivity and Facilitation in ASEAN," Conference papers 332499, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332499
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/332499/files/7143.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Boumellassa, Houssein & Debucquet, David Laborde & Mitaritonna, Cristina, 2009. "A picture of tariff protection across the World in 2004: MAcMap-HS6, Version 2," IFPRI discussion papers 903, International Food Policy Research Institute (IFPRI).
    2. Hiro Lee & Dominique van der Mensbrugghe, 2007. "Regional Integration, Sectoral Adjustments and Natural Groupings in East Asia," OSIPP Discussion Paper 07E008, Osaka School of International Public Policy, Osaka University.
    3. Lee, Hiro & Owen, Robert F. & van der Mensbrugghe, Dominique, 2009. "Regional integration in Asia and its effects on the EU and North America," Journal of Asian Economics, Elsevier, vol. 20(3), pages 240-254, May.
    4. Peter A. Petri & Michael G. Plummer & Fan Zhai, 2012. "ASEAN Economic Community: A General Equilibrium Analysis," Asian Economic Journal, East Asian Economic Association, vol. 26(2), pages 93-118, June.
    5. Hiro Lee & Michael G. Plummer, 2011. "Assessing the Impact of the ASEAN Economic Community," OSIPP Discussion Paper 11E002, Osaka School of International Public Policy, Osaka University.
    6. Brown, Drusilla K., 1987. "Tariffs, the terms of trade, and national product differentiation," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 503-526.
    7. Joseph Francois & Hanna Norberg & Martin Thelle, 2007. "Economic Impact of a Potential Free Trade Agreement (FTA) Between the European Union and South Korea," IIDE Discussion Papers 20070301, Institue for International and Development Economics.
    8. Lee, Hiro & Roland-Holst, David & van der Mensbrugghe, Dominique, 2004. "China's emergence in East Asia under alternative trading arrangements," Journal of Asian Economics, Elsevier, vol. 15(4), pages 697-712, August.
    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. Ponciano INTAL Jr, 2015. "AEC Blueprint Implementation Performance and Challenges: Trade Facilitation," Working Papers DP-2015-41, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Yoshifumi Fukunaga, 2015. "ASEAN's Leadership in the Regional Comprehensive Economic Partnership," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(1), pages 103-115, January.
    3. Ponciano Intal & Narjoko Dionisius & Yoshifumi Fukunaga, . "Mid-Term Review of the Implementation of AEC Blueprint: Executive Summary," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2012-mtr edited by Ponciano Intal, August.
    4. Itakura, Ken, 2017. "CGE Simulation of the ASEAN Economic Community and RCEP under Long-term Productivity Scenarios," Conference papers 332896, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Yu Ri Kim & Yasuyuki Todo & Daichi Shimamoto & Petr Matous, 2018. "Are seminars on export promotion effective? Evidence from a randomised controlled trial," The World Economy, Wiley Blackwell, vol. 41(11), pages 2954-2982, November.
    6. Sanchita Basu Das, 2015. "The Regional Comprehensive Economic Partnership: new paradigm or old wine in a new bottle?," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 29(2), pages 68-84, November.
    7. Ekaterina Y. ARAPOVA, 2017. "Ex-Post Analysis Of The Influence Of Tariff Liberalisation On Asean Exports," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 135-154.
    8. Yoshifumi Fukunaga & Ponciano Intal & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Dionisius & OUM Sothea, . "ASEAN Rising: ASEAN and AEC Beyond 2015," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2013-asean-rising edited by Yoshifumi Fukunaga & Ponciano Intal, Jr. & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Di, August.
    9. Yoshifumi Fukunaga & Ponciano Intal & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Dionisius & OUM Sothea, . "ASEAN Rising: ASEAN and AEC Beyond 2015," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2013-rpr-01 edited by Yoshifumi Fukunaga & Ponciano Intal, Jr. & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Di.
    10. Said, Rashidi & Ismail, Normaz Wana, 2018. "The Impacts of Malaysian Free Trade Agreements on Margins of Trade," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(1), pages 169-178.
    11. Zhenhua Chen & Xinmeng Li, 2021. "Economic impact of transportation infrastructure investment under the Belt and Road Initiative," Asia Europe Journal, Springer, vol. 19(1), pages 131-159, December.
    12. Misa Okabe, . "The Impact of ASEAN +1 FTAs on ASEAN's Trade," Chapters, in: Lili Yan Ing (ed.), East Asian Integration (First Edition), chapter 2, pages 25-66, Economic Research Institute for ASEAN and East Asia (ERIA).
    13. To, Minh Thu & Lee, Hiro, 2014. "Assessing the impacts of deeper trade reform in Vietnam in a general equilibrium framework," MPRA Paper 82271, University Library of Munich, Germany.
    14. Misa OKABE, 2015. "Impact of Free Trade Agreements on Trade in East Asia," Working Papers DP-2015-01, Economic Research Institute for ASEAN and East Asia (ERIA).
    15. Hübler, Michael & Pothen, Frank, 2017. "Trade-induced productivity gains reduce incentives to impose strategic tariffs," Economic Modelling, Elsevier, vol. 61(C), pages 420-431.
    16. Mohamad D. Revindo & Christopher Gan, 2018. "Factors Affecting Variation in SMES' Export Intensity," LPEM FEBUI Working Papers 201820, LPEM, Faculty of Economics and Business, University of Indonesia, revised May 2018.
    17. durongkaveroj, wannaphong, 2015. "The Next Chapter of ASEAN Economic Community through Integrating with the existing FTA partners (RCEP), Turkey, and Pakistan," MPRA Paper 63421, University Library of Munich, Germany.
    18. Makmun Syadullah & Miftahudin - & Benny Gunawan Ardiansyah, 2017. "Analysis of The Potential Impact of Regional Comprehensive Economic Partnership on the ASEAN Member Countries," Journal of Social and Development Sciences, AMH International, vol. 8(2), pages 28-37.
    19. Li, Qiaomin & Scollay, Robert & Gilbert, John, 2017. "Analyzing the effects of the Regional Comprehensive Economic Partnership on FDI in a CGE framework with firm heterogeneity," Economic Modelling, Elsevier, vol. 67(C), pages 409-420.
    20. Rebecca Sta. Maria & Shujiro Urata & Ponciano S. Intal, 2017. "ASEAN @ 50 Volume 5: The ASEAN Economic Community Into 2025 and Beyond," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2017-asean@50-5 edited by Rebecca Sta. Maria & Shujiro Urata & Ponciano S. Intal, August.
    21. Yoshifumi Fukunaga & Ikumo Isono, 2013. "Taking ASEAN+1 FTAs towards the RCEP: A Mapping Study," Working Papers DP-2013-02, Economic Research Institute for ASEAN and East Asia (ERIA).

    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. Ken Itakura & Hiro Lee, 2012. "Welfare Changes And Sectoral Adjustments Of Asia-Pacific Countries Under Alternative Sequencings Of Free Trade Agreements," Global Journal of Economics (GJE), World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 1-22.
    2. Massetti, Emanuele & Ricci, Elena Claire, 2011. "Super-Grids and Concentrated Solar Power: A Scenario Analysis with the WITCH Model," Conference papers 332112, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Hiro Lee & Ken Itakura, 2014. "TPP, RCEP, and Japan's Agricultural Policy Reforms," OSIPP Discussion Paper 14E003, Osaka School of International Public Policy, Osaka University.
    4. Lee, Hiro & Itakura, Ken, 2018. "The welfare and sectoral adjustment effects of mega-regional trade agreements on ASEAN countries," Journal of Asian Economics, Elsevier, vol. 55(C), pages 20-32.
    5. To, Minh Thu & Lee, Hiro, 2014. "Assessing the impacts of deeper trade reform in Vietnam in a general equilibrium framework," MPRA Paper 82271, University Library of Munich, Germany.
    6. Itakura, Ken & Lee, Hiro, 2012. "Welfare and Structural Adjustment Implications of Asian Track and Trans-Pacific Track Sequencings of FTAs," Conference papers 332175, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Marques, Alexandra P.S. & Rodrigues, João F.D. & Domingos, Tiago M.D., 2010. "The circular flow of CO2 emissions embodied in international trade," Conference papers 331986, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Lee, Hiro & Itakura, Ken, 2017. "Potential Costs of U.S. Withdrawal from the Trans-Pacific Partnership," Conference papers 332825, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Andrista, Safira & Widodo, Tri, 2017. "Welfare Impact of ASEAN Economic Integration: “ASEAN Way” Versus Theory," MPRA Paper 80880, University Library of Munich, Germany.
    10. Lee, Hiro & Owen, Robert F. & van der Mensbrugghe, Dominique, 2009. "Regional integration in Asia and its effects on the EU and North America," Journal of Asian Economics, Elsevier, vol. 20(3), pages 240-254, May.
    11. Li, Minghao & Balistreri, Edward J. & Zhang, Wendong, 2020. "The U.S.–China trade war: Tariff data and general equilibrium analysis," Journal of Asian Economics, Elsevier, vol. 69(C).
    12. Ana María Iregui, 2001. "Tax Exporting: An Analysis Using A Multiregional Cge Model," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 19(40), pages 89-133, December.
    13. Jin Suk Park & Eunju Hwang, 2023. "Sectoral FTA gains, conflicts, and the role of interindustry factor mobility: Evidence from Korea's free trade agreement," Pacific Economic Review, Wiley Blackwell, vol. 28(1), pages 97-123, February.
    14. Mevel, Simon & Valensisi, Giovanni & Karingi, Stephen, 2015. "The Economic Partnership Agreements and Africa’s integration and transformation agenda: the cases of West Africa and Eastern and Southern Africa regions," Conference papers 332580, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Bouet, Antoine & Laborde, David, 2008. "The potential cost of a failed Doha Round," Issue briefs 56, International Food Policy Research Institute (IFPRI).
    16. Sheng, Yu & Shi, Xunpeng, 2013. "Energy market integration and equitable growth across countries," Applied Energy, Elsevier, vol. 104(C), pages 319-325.
    17. Bouet, Antoine & Laborde, David, 2010. "Eight Years of Doha Trade Talks: Where Do We Stand?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(2), pages 1-22, August.
    18. Christopher Edmonds & Sumner J. La Croix & Yao Li, 2006. "The China's Rise as an International Trading Power," Economics Study Area Working Papers 88, East-West Center, Economics Study Area.
    19. David Hummels & Peter J. Klenow, 2002. "The Variety and Quality of a Nation's Trade," NBER Working Papers 8712, National Bureau of Economic Research, Inc.
    20. repec:era:eriabk:2021-impact-of-the-atiga-on-intra-asean-trade is not listed on IDEAS
    21. Robinson, Sherman & Burfisher, Mary E. & Hinojosa-Ojeda, Raul & Thierfelder, Karen E., 1993. "Agricultural policies and migration in a U.S.-Mexico free trade area: A computable general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 15(5-6), pages 673-701.

    More about this item

    Keywords

    Research Methods/ Statistical Methods; International Relations/Trade;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

    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:ags:pugtwp:332499. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.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.