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Governance, corruption, and trade in the Asia Pacific region

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  • Abe, Kazutomo
  • Wilson, John S.
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    Abstract

    This paper examines the impact of reducing corruption and improving transparency to lower trade costs in the Asia Pacific Economic Cooperation region. The authors find, based on a computable general equilibrium model, significant potential trade and welfare gains for Asia Pacific Economic Cooperation members, with increased transparency and lower levels of corruption. Results suggest that trade in the region would increase by 11 percent and global welfare would expand by $406 billion by raising transparency to the average in the region. Most of the increase in welfare would take place in member economies undertaking reform. Among the reformers, the gross domestic product of Vietnam, Thailand, Russia, and the Philippines would increase approximately 20 percent. The benefits to Malaysia and China would also be substantial with increased transparency and lower levels of corruption.

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    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4731.

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    Date of creation: 01 Sep 2008
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    Handle: RePEc:wbk:wbrwps:4731

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    Related research

    Keywords: Economic Theory&Research; Free Trade; Trade Policy; Emerging Markets; Currencies and Exchange Rates;

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    Cited by:
    1. Yue Li & John S. Wilson, 2009. "Trade Facilitation and Expanding the Benefits of Trade: Evidence from Firm Leval Data," Working Papers, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada. 7109, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..

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