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Intraregional Trade Costs in Asia: A Primer

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  • Yann Duval

    ()
    (Trade and Investment Division, ESCAP, Bangkok, Thailand)

  • Chorthip Utoktham

    ()
    (Trade and Investment Division, ESCAP, Bangkok, Thailand)

Abstract

While much has been said about the need to promote intraregional trade and the importance of reducing associated trade costs, quantitative estimates of such costs have been lacking. In this paper a new comprehensive measure of international trade costs is applied to calculate, according to value, trade costs within and between four Asian subregions, including the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC). Extraregional trade costs of the four subregions with free trade areas outside Asia, such as the North American Free Trade Area (NAFTA) and the European Union (EU), as well as their trade costs with China, India and Japan are also calculated. The analysis concludes with an evaluation of the importance of tariffs in overall trade costs and with the identification of sharp differences across Asian subregions.

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File URL: http://www.unescap.org/pdd/publications/apdj-18-2/1-Duval-and-Utoktham.pdf
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Bibliographic Info

Article provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its journal Asia-Pacific Development Journal.

Volume (Year): 18 (2011)
Issue (Month): 2 (December)
Pages: 1-23

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Handle: RePEc:unt:jnapdj:v:18:y:2011:i:2:p:1-24

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Keywords: Trade facilitation; trade costs; regional integration; subregion; Asia;

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References

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  1. Shepherd, Ben, 2010. "Trade costs and facilitation in APEC and ASEAN: Delivering the goods?," MPRA Paper 21531, University Library of Munich, Germany.
  2. Dennis Novy, 2013. "Gravity Redux: Measuring International Trade Costs With Panel Data," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 101-121, 01.
  3. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
  4. Helble, Matthias & Shepherd, Ben & Wilson, John S., 2007. "Transparency, trade costs, and regional integration in the Asia Pacific," Policy Research Working Paper Series 4401, The World Bank.
  5. Yann Duval & Chorthip Utoktham, 2009. "Behind-the-Border Trade Facilitation in Asia-Pacific: Cost of Trade, Credit Information, Contract Enforcement and Regulatory Coherence," Working Paper Series 209, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
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Cited by:
  1. Yann Duval & Chorthip Utoktham, 2011. "Trade costs in the India-Mekong Subregion: Identifying Policy Priorities for Trade Facilitation," Working Paper Series 411, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  2. Shepherd, Ben, 2011. "Logistics costs and competitiveness: measurement and trade policy applications," MPRA Paper 38254, University Library of Munich, Germany.
  3. Yann Duval & Chorthip Utoktham, 2011. "Trade Facilitation in Asia and the Pacific: Which Policies and Measures affect Trade Costs the Most?," Working Paper Series 111, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

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