Cost Reduction Effects of "pseudo FTAs" in Asia -Application of a price model based on a multilateral I/O table-
This paper examines the repercussion effects on the production cost of industries in Asian countries when some countries eliminate tariffs and import commodity taxes on all imports. This kind of analysis is related in some sense to that measuring the effects of FTAs on economies, and thus may be considered as an analysis of â€œpseudo FTAs.â€ Examining a number of combinations of â€œpseudo FTAsâ€ between China, Japan, and ASEAN, it is found that the case of China plus Japan plus ASEAN is the most effective â€œpseudo FTAâ€ of the combinations in terms of production cost reduction. The method is a form of price model based on the Asian International Input-Output Table. Almost no studies on price models related to multilateral I/O tables have been implemented thus far.
|Date of creation:||Mar 2010|
|Date of revision:|
|Publication status:||Published in IDE Discussion Paper. No. 226. 2010. 03|
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