IDEAS home Printed from https://ideas.repec.org/a/eee/jimfin/v154y2025ics0261560625000646.html
   My bibliography  Save this article

The dynamic trade and welfare effects of RCEP

Author

Listed:
  • Jin, Chenxin
  • Jin, Wei
  • Sheng, Bin
  • Sun, Zhen
  • Yan, Bing

Abstract

This paper examines the trade and welfare effects of the Regional Comprehensive Economic Partnership (RCEP) using a dynamic multi-region, multi-sector general equilibrium model. By incorporating key innovations such as region-specific heterogeneity, financial market imperfections, and phased trade liberalization, the analysis captures both short- and long-term impacts of RCEP on its member and non-member economies. The findings reveal that RCEP significantly boosts trade and welfare for member countries, particularly China, Korea, and ASEAN, while creating positive spillover effects for non-members with close economic ties to the region. However, the agreement exacerbates regional inequalities within China and presents uneven sectoral impacts, with non-manufacturing sectors benefiting more than manufacturing. The study highlights the critical role of reducing non-tariff barriers and financial frictions to amplify welfare gains, particularly for emerging economies. Additionally, scenarios involving potential membership of the U.S. and India underscore the strategic importance of RCEP in shaping regional and global trade dynamics. This research contributes to the literature on trade agreements by offering a comprehensive, dynamic perspective on the long-term implications of RCEP.

Suggested Citation

  • Jin, Chenxin & Jin, Wei & Sheng, Bin & Sun, Zhen & Yan, Bing, 2025. "The dynamic trade and welfare effects of RCEP," Journal of International Money and Finance, Elsevier, vol. 154(C).
  • Handle: RePEc:eee:jimfin:v:154:y:2025:i:c:s0261560625000646
    DOI: 10.1016/j.jimonfin.2025.103329
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0261560625000646
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jimonfin.2025.103329?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    RCEP; Dynamic trade effects; Dynamic welfare effects;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F6 - International Economics - - Economic Impacts of Globalization

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jimfin:v:154:y:2025:i:c:s0261560625000646. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30443 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.