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Asia's Changing Role in World Trade: Prospects for South - South Trade Growth to 2030


Author Info

  • Anderson, Kym

    (University of Adelaide and the Australian National)

  • Strutt, Anna

    (University of Waikato)


Developing Asia’s rapid economic growth has been shifting the global economic and industrial centers of gravity away from the North Atlantic, raising the importance of Asia in world trade, and boosting South–South trade. How will trade patterns change over the next 2 decades in the course of economic growth and structural changes in developing Asia and the rest of the world? In particular, what can be expected of developing Asia’s intraregional trade and its trade with other developing country regions? This paper addresses these questions by projecting a core baseline for the world economy from 2004 to 2030 and comparing it with alternative scenarios for 2030. We employ the global economywide GTAP model and Version 7.1 of the GTAP database, and assume for the core projection that trade-related policies do not change over the next 2 decades. Alternative scenarios explore (i) slower economic growth rates in the “North”, (ii) slower productivity growth in primary sectors, and (iii) various trade policy reforms in developing Asia without and with policy reforms also in the “North” and in South–South trade. Projected impacts on international prices, sectoral shares of regional gross domestic product and trade, “openness” to trade, and welfare gains from trade reforms are highlighted, in addition to their effects on regional shares of global gross domestic product and trade. The paper concludes by drawing out implications for regional and multilateral trade policy.

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Bibliographic Info

Paper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 264.

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Length: 53 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:ris:adbewp:0264

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Related research

Keywords: Global computable general equilibrium model projections; crop and labor productivity growth;

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Cited by:
  1. John Gilbert, 2013. "The economic impact of new regional trading developments in the ESCAP region," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 20(1), pages 1-32, June.
  2. Anderson, Kym & Strutt, Anna, 2012. "Asia’s Growth, the Changing Geography of World Trade, and Food Security: Projections to 2030," CEPR Discussion Papers 8950, C.E.P.R. Discussion Papers.
  3. Anderson, Kym & Jha, Shikha & Nelgen, Signe & Strutt, Anna, 2012. "Reexamining Policies for Food Security," ADB Economics Working Paper Series 301, Asian Development Bank.
  4. Centre for Policy Dialogue (CPD), 2013. "Analytical Review of Bangladesh’s Macroeconomic Performance in FY2012-13 (First Reading)," CPD Working Paper 101, Centre for Policy Dialogue (CPD).
  5. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
  6. Anderson, Kym & Strutt, Anna, 2012. "Global food markets by 2030: What roles for farm TFP growth and trade policies?," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124192, Australian Agricultural and Resource Economics Society.
  7. Bernhardt, Thomas, 2014. "How promising is South-South trade as a contributor to economic development in Asia and South America? Insights from estimating income elasticities of import demand," MPRA Paper 56413, University Library of Munich, Germany.


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