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General equilibrium evaluation of Japan-Singapore free trade agreement

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  • Lee, Hiro

Abstract

Japan and Singapore are expected to sign a free trade agreement (FTA) by the early 2002. This paper provides a preliminary assessment of the Japan-Singapore FTA using an 18-region, 15-sector dynamic computable general equilibrium (CGE) model. Bilateral removal of trade barriers in all sectors other than agriculture and food and reductions in customs costs are incorporated in the scenarios. In the absence of positive spillovers to productivity, the FTA is estimated to have a negligible impact. Were the FTA to raise total factor productivity via network externalities within and between the trading partners, the potential benefits of the trade agreement would increase substantially. Furthermore, the relative degree of trade diversion would be significantly smaller in the latter scenario.

Suggested Citation

  • Lee, Hiro, 2001. "General equilibrium evaluation of Japan-Singapore free trade agreement," MPRA Paper 82605, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:82605
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    References listed on IDEAS

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    Cited by:

    1. S.M. Thangavelu & Toh Mun Heng, 2005. "Bilateral “WTO-Plus†Free Trade Agreements : The WTO Trade Policy Review of Singapore 2004," Trade Working Papers 22590, East Asian Bureau of Economic Research.
    2. S.M. Thangavelu & Toh Mun Heng, 2005. "Bilateral “WTO-Plus” Free Trade Agreements: The WTO Trade Policy Review of Singapore 2004," SCAPE Policy Research Working Paper Series 0505, National University of Singapore, Department of Economics, SCAPE.
    3. Chae‐Deug Yi, 2023. "The economic and trade effects of the UK–Korea free trade agreement on the United Kingdom, Korea, Japan, China, and the European Union," Bulletin of Economic Research, Wiley Blackwell, vol. 75(2), pages 227-253, April.

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    More about this item

    Keywords

    Japan-Singapore; FTA; CGE model;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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