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Growth and Trade Horizons for Asia: Long Term Forecasts for Regional Integration

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Author Info
Roland-Holst, David
Verbiest, Jean-Pierre
Zhai, Fan

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Abstract

Economic emergence of the People?s Republic of China (PRC) and India has fundamentally altered the economic landscape of Asia and its relation to the global economy. Using the new dynamic global model, we present forecasts for Asian expansion over 2025. These baseline growth forecasts elucidate shifting patterns of regional specialization and their consequences for growth and structural change in the Asian economies. The central role of trade is examined through analysis of a variety of hypothetical global and regional trade agreements. Our results indicate that trade within the Asian region is far from reaching its potential, and policies that facilitate integration and more efficient regional trade can accelerate growth, especially for lower-income Asia. A deeper and more inclusive Asian free trade area can achieve for its members large benefits. As an emerging growth bridge between the PRC and India, ASEAN economies have the most to gain from Asian economic integration.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2008/rp2008-106.pdf
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Publisher Info
Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number UNU-WIDER Research Paper RP2008/106.

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Length: 36 pages
Date of creation: 2008
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Handle: RePEc:unu:wpaper:rp2008-106

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Keywords: globalization; integration; Asia;

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References listed on IDEAS
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  1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Boston College Working Papers in Economics 593, Boston College Department of Economics. [Downloadable!]
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Cited by:
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  1. Alan Bollard & Mark Smith, 2006. "Major global developments in the new millennium," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 69, pages 14p., June. [Downloadable!]
  2. Dollar, David, 2007. "Asian century or multi-polar century ?," Policy Research Working Paper Series 4174, The World Bank. [Downloadable!]
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