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Intraregional Trade Costs in Asia: A Primer

Author

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  • Yann Duval

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

  • Chorthip Utoktham

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

Abstract

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.

Suggested Citation

  • Yann Duval & Chorthip Utoktham, 2011. "Intraregional Trade Costs in Asia: A Primer," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 18(2), pages 1-23, December.
  • Handle: RePEc:unt:jnapdj:v:18:y:2011:i:2:p:1-24
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    References listed on IDEAS

    as
    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. Dennis Novy, 2013. "Gravity Redux: Measuring International Trade Costs With Panel Data," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 101-121, January.
    3. Ben Shepherd, 2010. "Trade costs and facilitation in APEC and ASEAN: delivering the goods?," STUDIES IN TRADE AND INVESTMENT,in: Rising Non-Tariff Protectionism and Crisis Recovery, chapter 5, pages 93-110 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    4. Abe , Kazutomo & Wilson, John S., 2008. "Trade, Transparency, and Welfare in the Asia Pacific," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 12(2), pages 35-78, December.
    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 Paper Series 209, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    6. 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.
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    Citations

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    Cited by:

    1. Yann Duval & Chorthip Utoktham, 2011. "Trade Facilitation in Asia and the Pacific: Which Policies and Measures affect Trade Costs the Most?," Working Paper Series 111, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    2. Lord, Montague & Artuso, Fabio & Record, Richard & Clarke, Julian, 2014. "Trading Costs in East Asia’s Global Value Chains," MPRA Paper 66437, University Library of Munich, Germany.
    3. repec:pal:marecl:v:19:y:2017:i:2:d:10.1057_mel.2015.31 is not listed on IDEAS
    4. Shepherd, Ben, 2011. "Logistics costs and competitiveness: measurement and trade policy applications," MPRA Paper 38254, University Library of Munich, Germany.
    5. Yann Duval & Chorthip Utoktham, 2011. "Trade costs in the India-Mekong Subregion: Identifying Policy Priorities for Trade Facilitation," Working Paper Series 411, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

    More about this item

    Keywords

    Trade facilitation; trade costs; regional integration; subregion; Asia;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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