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Regional Integration, Sectoral Adjustments and Natural Groupings in East Asia

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Author Info
Hiro Lee (Osaka School of International Public Policy,Osaka University)
Dominique van der Mensbrugghe (The World Bank)
Abstract

Although East Asian countries were relatively inactive in signing free trade agreements (FTAs) until the end of 1990s, a number of FTAs involving East Asian countries have been signed since the turn of the century. Because sectoral interests can exert significant influence on policy negotiations, the sectoral results would be particularly important for political economy considerations. The objective of this study is to compare welfare gains and sectoral adjustments resulting from various FTA scenarios in East Asia using a dynamic global computable general equilibrium (CGE) model. The RCA rankings of commodities with various FTA scenarios and those with the global trade liberalization are correlated to examine how gnaturalh each grouping would be. The results suggest that the ASEAN+3 FTA, with relatively large welfare gains and small structural adjustments, could be a facilitating intermediate step towards global free trade. Some of the smaller FTAs, such as the ASEAN-China and ASEAN-Korea FTAs, would result in large structural adjustments for ASEAN countries.

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File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2007/DP2007E008.pdf
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Publisher Info
Paper provided by Osaka School of International Public Policy, Osaka University in its series OSIPP Discussion Paper with number 07E008.

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Length: 44 pages
Date of creation: Sep 2007
Date of revision:
Handle: RePEc:osp:wpaper:07e008

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Related research
Keywords: Regional integration FTA RCA East Asia CGE model

Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  1. Peter J. Lloyd & Donald Maclaren, 2004. "Gains and Losses from Regional Trading Agreements: A Survey," The Economic Record, The Economic Society of Australia, vol. 80(251), pages 445-467, December. [Downloadable!] (restricted)
  2. Innwon Park, 2006. "East Asian Regional Trade Agreements: Do They Promote Global Free Trade?," Pacific Economic Review, Blackwell Publishing, vol. 11(4), pages 547-568, December. [Downloadable!] (restricted)
  3. Shujiro Urata & Kozo Kiyota, 2003. "The Impacts of an East Asia FTA on Foreign Trade in East Asia," NBER Working Papers 10173, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Tubagus Feridhanusetyawan, 2005. "Preferential Trade Agreements in the Asia-Pacific Region," IMF Working Papers 05/149, International Monetary Fund. [Downloadable!]
  5. Ethier, Wilfred J, 1998. "The New Regionalism," Economic Journal, Royal Economic Society, vol. 108(449), pages 1149-61, July. [Downloadable!] (restricted)
  6. Emiko Fukase & L. Alan Winters, 2003. "Possible Dynamic Effects of AFTA for the New Member Countries," The World Economy, Blackwell Publishing, vol. 26(6), pages 853-871, 06. [Downloadable!] (restricted)
  7. Mordechai E. Kreinin & Michael G. Plummer, 1994. "Structural Change And Regional Integration In East Asia," International Economic Journal, Korean International Economic Association, vol. 8(2), pages 1-12, June. [Downloadable!] (restricted)
  8. Philippa Dee, 2007. "East Asian Economic Integration and its Impact on Future Growth," The World Economy, Blackwell Publishing, vol. 30(3), pages 405-423, 03. [Downloadable!] (restricted)
  9. Anne O. Krueger, 1999. "Are Preferential Trading Arrangements Trade-Liberalizing or Protectionist?," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 105-124, Fall. [Downloadable!] (restricted)
  10. Jong-Wha Lee & Innwon Park, 2005. "Free Trade Areas in East Asia: Discriminatory or Non-discriminatory?," The World Economy, Blackwell Publishing, vol. 28(1), pages 21-48, 01. [Downloadable!] (restricted)
  11. Keuschnigg, Christian & Kohler, Wilhelm, 2002. "Eastern Enlargement of the EU: How Much Is It Worth for Austria?," Review of International Economics, Blackwell Publishing, vol. 10(2), pages 324-42, May. [Downloadable!] (restricted)
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  12. 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. [Downloadable!] (restricted)
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