Advanced Search
MyIDEAS: Login

Potential Impacts Of Regional Trade Enlargement In East Asia On Laos' Trade

Contents:

Author Info

  • SITHANONXAY SUVANNAPHAKDY

    ()
    (Hiroshima Shudo University, Japan)

  • CHRIS CZERKAWASKI

    (Hiroshima Shudo University, Japan)

  • TOSHIHISA TOYODA

    (Hiroshima Shudo University, Japan)

Abstract

Using an unbalanced panel dataset of bilateral trade flows from 1992-2009, we assess the potential impacts of the formation of ASEAN+3 and ASEAN+6 free trade areas (FTAs) on Laos' trade. We find that bilateral trade flows between Laos and its trade partners are positively related to the sum of bilateral gross domestic product (GDP) and the degree of similarity in GDP size between Laos and the partner, and inversely related to relative factor endowment differences, transportation costs, and import tariff rates. Our simulation results show that Laos stands to gain from the formation of ASEAN+3 and ASEAN+6 FTAs if tariff barriers are gradually decreased. However, such examples of regional integration could harm Laos' economy if all tariff barriers were completely removed due to Laos' lack of competitiveness.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.jed.or.kr/full-text/38-3/4.pdf
Download Restriction: no

Bibliographic Info

Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 38 (2013)
Issue (Month): 3 (September)
Pages: 85-110

as in new window
Handle: RePEc:jed:journl:v:38:y:2013:i:3:p:85-110

Contact details of provider:
Web page: http://www.jed.or.kr/
More information through EDIRC

Related research

Keywords: East Asia; Trade Flow; Gravity Model; Laos;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
  2. Ichiro Otani & Chi Do Pham, 1996. "The Lao People's Democratic Republic - Systemic Transformation and Adjustment," IMF Occasional Papers 137, International Monetary Fund.
  3. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," United Kingdom Stata Users' Group Meetings 2003 02, Stata Users Group.
  4. Shepherd, Ben & Wilson, John S., 2009. "Trade facilitation in ASEAN member countries: Measuring progress and assessing priorities," Journal of Asian Economics, Elsevier, vol. 20(4), pages 367-383, September.
  5. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 291-316, November.
  6. M Arellano & O Bover, 1990. "Another Look at the Instrumental Variable Estimation of Error-Components Models," CEP Discussion Papers dp0007, Centre for Economic Performance, LSE.
  7. Peter Egger, 2001. "European exports and outward foreign direct investment: A dynamic panel data approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(3), pages 427-449, September.
  8. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  9. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 441-487, 05.
  10. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  11. Martínez-Zarzoso, Inmaculada & Felicitas, Nowak-Lehmann D. & Horsewood, Nicholas, 2009. "Are regional trading agreements beneficial?: Static and dynamic panel gravity models," The North American Journal of Economics and Finance, Elsevier, vol. 20(1), pages 46-65, March.
  12. Sithanonxay SUVANNAPHAKDY & Toshihisa TOYODA & Chris CZERKAWSKI, 2011. "Enhancing Trade Flows in ASEAN Plus Six," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
  13. Sergio Nardis, 2004. "Currency unions and trade: The special case of EMU," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 140(3), pages 625-649, September.
  14. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or Else? Free Trade Agreements in the Enlarged EU - A Gravity Model Estimate," Economics Working Papers 037, European Network of Economic Policy Research Institutes.
  15. Hummels, D. & Levinsohn, J., 1993. "Monopolistic Competition and International Trade: Reconsidering the Evidence," Working Papers 339, Research Seminar in International Economics, University of Michigan.
  16. Yunling Zhang, 2006. "China And East Asian Economic Integration And Cooperation," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 31(2), pages 169-185, December.
  17. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:jed:journl:v:38:y:2013:i:3:p:85-110. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Changhui Kang).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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