A Free Trade Area of the Asia Pacific (FTAAP): Is It Desirable?
AbstractThis paper evaluates whether the proposed FTAAP is a desirable policy option for APEC member economies and the world economy. More specifically, this paper quantitatively investigates whether the FTAAP satisfies conditions for a trade bloc to generate positive and sufficient net trade creation effect. In addition, this paper estimates the likely impact of the FTAAP by using a CGE model analysis. Based on statistical data analysis, this paper strongly argues that the FTAAP can be a desirable regional trade bloc able to generate positive gains from freer trade. From the ex-ante scenario analysis using both static and capital accumulation CGE Models, this paper concludes that the FTAAP has great potential for improving welfare of participating APEC economies and will boost economic growth in the region. In particular, the FTAAP would be even better if it can be linked with liberalization of trade in services and enhanced trade facilitation.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 26680.
Date of creation: 01 Sep 2010
Date of revision:
Regional Trade Agreement (RTA); APEC; FTAAP; Computable General Equilibrium (CGE); Trade in Services; Trade Facilitation;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-20 (All new papers)
- NEP-CMP-2010-11-20 (Computational Economics)
- NEP-INT-2010-11-20 (International Trade)
- NEP-SEA-2010-11-20 (South East Asia)
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