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Accelerating Regional Integration: Issues at the Border

  • Brooks, Douglas H.

    (Asian Development Bank Institute)

  • Stone, Susan F.

    (Asian Development Bank Institute)

The sharp decline in trade volume and value during the current economic crisis has contributed to lower transportation costs and reduced waiting times at border crossings, reducing the urgency of progress on trade facilitation. Meanwhile, greater trade is expected to play a key role in recovery, and in sustaining growth afterwards. The crisis offers an excellent opportunity to make progress on facilitating intra-Asian trade and boosting the region's contribution to global economic recovery. This paper examines the status of, and challenges to, trade facilitation among the Asian Asia-Pacific Economic Cooperation members, and the roles of hard and soft infrastructure (including logistics) in improving that performance. Analysis with a computable general equilibrium framework indicates that even a relatively modest reduction in trade costs can yield significant gains. Gross domestic product in the region expands and countries move into a more diversified trading pattern. Of particular relevance for policy considerations is that the results vary considerably across bilateral trade routes and commodity categories.

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Paper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 200.

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Length: 30 pages
Date of creation: 25 Feb 2010
Date of revision:
Handle: RePEc:ris:adbiwp:0200
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  1. Inmaculada Martínez-Zarzoso & Laura Márquez-Ramos, 2007. "The Effect of Trade Facilitation on Sectoral Trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 167, Ibero-America Institute for Economic Research.
  2. Hoekman , Bernard & Nicita, Alessandro, 2008. "Trade Policy, Trade Costs, and Developing Country Trade," Policy Research Working Paper Series 4797, The World Bank.
  3. Amiti, Mary & Smarzynska Javorcik, Beata, 2008. "Trade costs and location of foreign firms in China," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 129-149, February.
  4. Kimura, Fukunari & Takahashi, Yuya & Hayakawa, Kazunobu, 2007. "Fragmentation and parts and components trade: Comparison between East Asia and Europe," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 23-40, February.
  5. H. Brooks, Douglas & F. Stone, Susan, 2010. "Infrastructure and Trade Facilitation in Asian APEC," Asian Development Review, Asian Development Bank, vol. 27(1), pages 135-159.
  6. Wilson,John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2003. "Trade facilitation and economic development : measuring the impact," Policy Research Working Paper Series 2988, The World Bank.
  7. Dennis, Allen & Shepherd, Ben, 2007. "Trade costs, barriers to entry, and export diversification in developing countries," Policy Research Working Paper Series 4368, The World Bank.
  8. Hummels, David & Lugovskyy, Volodymyr & Skiba, Alexandre, 2009. "The trade reducing effects of market power in international shipping," Journal of Development Economics, Elsevier, vol. 89(1), pages 84-97, May.
  9. Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2002. "Assessing the impact of communication costs on international trade," Policy Research Working Paper Series 2929, The World Bank.
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