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Regional Cooperation, Infrastructure, and Trade Costs in Asia

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  • Douglas H. Brooks
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    Abstract

    International trade has played an essential role in Asia’s remarkable growth, development, and integration in recent decades. Infrastructure, both hard and soft, has played an integral part in facilitating that trade, primarily through reducing the associated transaction costs. Regional coordination and cooperation can help to reduce negative externalities from trade and to capitalize more fully on positive spillover effects. This study explores the nexus between Asia’s trade flows and patterns, trade costs and how they are influenced by infrastructure development, and the role of regional cooperation in facilitating trade’s contribution to economic integration. A virtuous circle between growth, infrastructure investment, trade expansion, and regional integration is elucidated.

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    Bibliographic Info

    Paper provided by eSocialSciences in its series Working Papers with number id:3090.

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    Date of creation: Oct 2010
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    Handle: RePEc:ess:wpaper:id:3090

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    Related research

    Keywords: International trade; development; Regional coordination; cooperation; Asia; infrastructure investment; trade expansion;

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    1. Amiti, Mary & Javorcik, Beata Smarzynska, 2005. "Trade costs and location of foreign firms in China," Policy Research Working Paper Series 3564, The World Bank.
    2. David L. Hummels & Georg Schaur, 2013. "Time as a Trade Barrier," American Economic Review, American Economic Association, vol. 103(7), pages 2935-59, December.
    3. Joseph F. Francois & Miriam Manchin, 2007. "Institutions, infrastructure, and trade," Economics working papers 2007-05, Department of Economics, Johannes Kepler University Linz, Austria.
    4. Douglas H. Brooks & Fan Zhai, 2006. "Macroeconomic Effects of Infrastructure Financing: A Tale of Two Countries," IDB Publications 45878, Inter-American Development Bank.
    5. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank.
    6. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Boston College Working Papers in Economics 593, Boston College Department of Economics.
    7. Berthelon, Matias & Freund, Caroline, 2008. "On the conservation of distance in international trade," Journal of International Economics, Elsevier, vol. 75(2), pages 310-320, July.
    8. Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2005. "Assessing the impact of communication costs on international trade," Journal of International Economics, Elsevier, vol. 67(2), pages 428-445, December.
    9. Giuseppe Nicoletti & Steve Golub & Dana Hajkova & Daniel Mirza & Kwang-Yeol Yoo, 2003. "Policies and International Integration: Influences on Trade and Foreign Direct Investment," OECD Economics Department Working Papers 359, OECD Publishing.
    10. David Hummels & Alexandre Skiba, 2004. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1384-1402, December.
    11. Clark, Ximena & Dollar, David & Micco, Alejandro, 2004. "Port efficiency, maritime transport costs, and bilateral trade," Journal of Development Economics, Elsevier, vol. 75(2), pages 417-450, December.
    12. Maur, Jean-Christophe, 2008. "Regionalism and trade facilitation : a primer," Policy Research Working Paper Series 4464, The World Bank.
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