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Intraregional Trade Costs in Asia: A Primer

  • Yann Duval

    ()

    (Trade and Investment Division, ESCAP, Bangkok, Thailand)

  • Chorthip Utoktham

    ()

    (Trade and Investment Division, ESCAP, Bangkok, Thailand)

While much has been said about the need to promote intraregional trade and the importance of reducing associated trade costs, quantitative estimates of such costs have been lacking. In this paper a new comprehensive measure of international trade costs is applied to calculate, according to value, trade costs within and between four Asian subregions, including the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC). Extraregional trade costs of the four subregions with free trade areas outside Asia, such as the North American Free Trade Area (NAFTA) and the European Union (EU), as well as their trade costs with China, India and Japan are also calculated. The analysis concludes with an evaluation of the importance of tariffs in overall trade costs and with the identification of sharp differences across Asian subregions.

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Article provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its journal Asia-Pacific Development Journal.

Volume (Year): 18 (2011)
Issue (Month): 2 (December)
Pages: 1-23

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Handle: RePEc:unt:jnapdj:v:18:y:2011:i:2:p:1-24
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  1. Dennis Novy, 2013. "Gravity Redux: Measuring International Trade Costs With Panel Data," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 101-121, 01.
  2. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, 01.
  3. Shepherd, Ben, 2010. "Trade costs and facilitation in APEC and ASEAN: Delivering the goods?," MPRA Paper 21531, University Library of Munich, Germany.
  4. Helble, Matthias & Shepherd, Ben & Wilson, John S., 2007. "Transparency, trade costs, and regional integration in the Asia Pacific," Policy Research Working Paper Series 4401, The World Bank.
  5. Yann Duval & Chorthip Utoktham, 2009. "Behind the Border Trade Facilitation in Asia-Pacific: Cost of Trade, Credit Information, Contract Enforcement and Regulatory Coherence," Working Papers 6709, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
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