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The role of microeconomic policy reform in regional integration  analytical and empirical issues

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  • Philippa Dee

    (Crawford)

Abstract

Economic integration should not be an end in itself, but the outcome of domestic reforms that increase the general contestability of markets. The paper finds that for India, comprehensive domestic regulatory reform dominates as an integration strategy, while an ASEAN+6 PTA would fail to deliver gains. Multilateral action is an intermediate strategy, important for delivering trade liberalisation in sensitive sectors and in highly protected economies. The paper then considers what institutional approaches might facilitate further domestic structural reforms. Key to this are mechanisms to review the desirability and performance of all regulations and institutions on an ongoing basis, and in a way that involves all relevant stakeholders. Such policy review institutions can provide technical solutions, helping to identify particular reform options. They can also be part of a strategy to manage the domestic political economy of reform, by providing a forum in which countervailing interests could marshal against vested interests, thus helping to build a coalition in favour of reform. Finally, they can facilitate policy coordination within and across levels of government. The paper considers desirable characteristics of such institutions, and provides examples from around the Asian region.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series EABER Working Papers with number 21793.

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Date of creation: Apr 2008
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Handle: RePEc:eab:wpaper:21793

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
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Related research

Keywords: economic integration; preferential trade agreements; regulatory barriers to competition; domestic regulatory reform; Asia; institutions;

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References

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  1. Bernard Wonder, 2007. "Policy Determinants of Productivity Growth in Australia," EABER Working Papers 21869, East Asian Bureau of Economic Research.
  2. Gilberto Montecer Llanto, 2007. "The Policy Development Process and the Agenda for Effective Institutions : The Philippines," EABER Working Papers 21874, East Asian Bureau of Economic Research.
  3. Philippa Dee, 2005. "East Asian Economic Integration and its Impact on Future Growth," Asia Pacific Economic Papers 350, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  4. Arvind Panagariya, 1999. "The Regionalism Debate: An Overview," The World Economy, Wiley Blackwell, vol. 22(4), pages 477-512, 06.
  5. Llanto, Gilberto M., 2007. "The Policy Development Process and the Agenda for Effective Institutions: The Philippines," Discussion Papers DP 2007-08, Philippine Institute for Development Studies.
  6. Vo Tri Thanh & Nguyen Tu Anh, 2006. "Institutional Changes for Private Sector Development in Vietnam : Experience and Lessons," EABER Working Papers 21826, East Asian Bureau of Economic Research.
  7. Pich Nitsmer, 2007. "Gridlock - Regulatory Regimes in the Thai Passenger Transport Sector," EABER Working Papers 21866, East Asian Bureau of Economic Research.
  8. Arvind Panagariya, 2000. "Preferential Trade Liberalization: The Traditional Theory and New Developments," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 287-331, June.
  9. Mitsuo Hosen, 2007. "Acceleration of Economic Reform in Japan and the Role of the Council on Economic and Fiscal Policy," EABER Working Papers 21864, East Asian Bureau of Economic Research.
  10. Philippa Dee & Kevin Hanslow, 2002. "Multilateral liberalisation of services trade," International Trade 0207002, EconWPA.
  11. Gilberto Montecer Llanto, 2007. "The Policy Development Process and the Agenda for Effective Institutions : The Philippines," Governance Working Papers 21926, East Asian Bureau of Economic Research.
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