Do Regional Trade Agreements Increase Trade? Empirical Evidence from the Asia-Pacific Region

Do Regional Trade Agreements Increase Trade? Empirical Evidence from the Asia-Pacific Region
Author: Behrooz Gharleghi
Publisher:
Total Pages: 0
Release: 2020
Genre:
ISBN:

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This article examines the effects of regional trade agreements. The augmented gravity model of international trade is used to test for trade creation and diversion in the context of trade agreements in the Asia-Pacific region. The results of the estimated model indicate that trade has increased among the members of AFTA and APTA but not among the AANZFTA members. Differences in the levels of development appear to have a significant impact on trade flows, suggesting that there can be no general presumption about the extent of trade creation and trade diversion.

Regionalism, Trade and Economic Development in the Asia-Pacific Region

Regionalism, Trade and Economic Development in the Asia-Pacific Region
Author: Muhammed Abu B. Siddique
Publisher: Edward Elgar Publishing
Total Pages: 255
Release: 2007-01-01
Genre: Business & Economics
ISBN: 1847204406

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The editor of this book is to be congratulated for providing us with the works of a group of authors who combine proficient technical skills with elegant and lucid writing capabilities. . . This book would make excellent recommended reading for both undergraduate and graduate classes in international trade and finance. Herb Thompson, Journal of Contemporary Asia This book is based on the premise that Regional Trade Agreements (RTAs) in the Asia-Pacific significantly impact on the material progress of the peoples of this region. These impacts in terms of the benefits and costs associated with RTAs will vary greatly from country to country. The internationally acclaimed contributors examine the theoretical perspective of RTAs in relation to exchange rates, the role and goals of the WTO and agriculture. The tensions and trade frictions resulting from the formation of trade blocs and their conflicts with the roles and goals of the WTO are also examined in the book. Those economies that are considered the economic powerhouses of the region including China, Japan, South Korea, major ASEAN countries and Australia are discussed in depth. The findings of the book suggest that RTAs are becoming increasingly popular in the Asia-Pacific region. However the associated costs and benefits depend on a number of complex factors including exchange rates, negotiation skills, the sectors included or excluded from the RTA, and the level of economic development of the nations signing the RTAs. The book will be particularly useful to academics, researchers, consultants, students, policy makers (including trade negotiators), and practitioners involved in trade and development in the Asia-Pacific region.

New Regional Trading Arrangements in the Asia Pacific?

New Regional Trading Arrangements in the Asia Pacific?
Author: Robert Scollay
Publisher: Peterson Institute
Total Pages: 594
Release: 2001
Genre: Trade blocs
ISBN: 9780881323023

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What are the choices the Asia-Pacific community will face if it proceeds further down the path of developing preferential regional trading arrangements? Fragmentation of the region into preferential trading arrangements on a bilateral or subregional basis promises relatively little economic gain and considerable risk of increased trade conflict. Larger preferential trading blocs, spanning the whole of East Asia, the Western Pacific, or the APEC membership, offer greater potential economic benefits but also face formidable political obstacles. In this study, Scollay and Gilbert weigh the economic consequences of the increased use of preferential trading arrangements in the Asia-Pacific region, whether these develop on the basis of trans-Pacific cooperation or solely within the East Asian or Western Pacific sub-regions. They evaluate the economic effects of both the existing proposals for new bilateral and multilateral agreements and of more far-reaching developments involving the creation of a substantial trading bloc or blocs in the region. Comparisons between the economic effects of establishing such bloc(s) in the region and the effects of achieving APEC's Bogor goals on the basis of "open regionalism" suggest that the latter approach continues to offer a worthwhile alternative. The study demonstrates that the benefits of global free trade dominate those available from establishment of any combination of major blocs or from APEC's "open regionalism".

Bilateral Trade Agreements in the Asia-Pacific

Bilateral Trade Agreements in the Asia-Pacific
Author: Vinod Aggarwal
Publisher: Routledge
Total Pages: 332
Release: 2013-06-17
Genre: Business & Economics
ISBN: 1136633456

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The Asia-Pacific region has witnessed a rapid rise in bilateral preferential trade agreements at the beginning of the twenty-first century. This trend could have potentially dramatic effects on the trading patterns of countries in the transpacific region and beyond. Some argue that these accords will spur multilateral negotiations, while others believe that they will irreparably damage the trading system. Bilateral Trade Agreements in the Asia-Pacific examines the underlying political and economic factors driving these accords, based on a novel theoretical framework. Experts then provide overviews of political and economic trends in the region as well as detailed analysis of the trade strategies of Japan, China, Singapore, South Korea, Malaysia, Taiwan, Thailand, the United States and Mexico. By systematically evaluating and assessing the driving forces underlying the turn to bilateral trade agreements in the Asia-Pacific, this book provides the first comprehensive analysis of this crucial phenomenon. Growing numbers of countries both in the region and elsewhere in the world are now considering further negotiation of bilateral trade accords. Understanding how these arrangements will fit or conflict with existing institutions in the Asia-Pacific and the WTO makes this book imperative reading for policy-makers and scholars.

Free Trade Agreements in the Asia Pacific

Free Trade Agreements in the Asia Pacific
Author: Christopher Charles Findlay
Publisher: World Scientific
Total Pages: 332
Release: 2010
Genre: Business & Economics
ISBN: 981427139X

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Free Trade Agreements (FTAs) have proliferated in East Asia as regional economies rush to catch up with the rest of the world OCo but what difference do they make? This book answers that question by providing an up-to-date assessment of the quality and impact of FTAs in the region. Featuring a collection of papers originally written for the prestigious Research Institute for Economy, Trade and Industry (RIETI) in Tokyo, it presents contemporary analysis and insights into the evolution of recent FTAs. The book is suitable for use by trade policy negotiators, policy analysts, and people developing business strategies in organizations, as well as graduate students and researchers in the field. Sample Chapter(s). Chapter 1: Rules of Origin and Agricultural Trade Liberalisation in Major Free Trade Agreements (249 KB). Contents: Rules of Origin and Agricultural Trade Liberalisation in Major Free Trade Agreements (I Cheong & J Cho); Services in Free Trade Agreements (R Ochiai et al.); Analysis of the Restrictions on Foreign Direct Investment in Free Trade Agreements (S Urata & J Sasuya); A Comparison of the Safeguard Mechanisms of Free Trade Agreements (A Kotera & T Kitamura); Assessing the Economic Impacts of Free Trade Agreements: A Computable Equilibrium Model Approach (K Abe); The Impacts of Free Trade Agreements on Trade Flows: An Application of the Gravity Model Approach (S Urata & M Okabe); On the Use of Free Trade Agreements by Japanese Firms (K Takahashi & S Urata); Impacts of Japanese FTAs/EPAs: Preliminary Post Evaluation (M Ando). Readership: Graduate students and researchers in international trade; trade policy negotiators; policy analysts; business strategy developers."

Cross Regional Trade Agreements

Cross Regional Trade Agreements
Author: Saori N. Katada
Publisher: Springer Science & Business Media
Total Pages: 173
Release: 2008-06-24
Genre: Business & Economics
ISBN: 3540793275

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An unacknowledged key feature of East Asian FTA diplomacy is the region's active cross-regional preferential trading relations. In sharp contrast to the Americas and Europe, where cross-regional initiatives gained strength after the consolidation of regional trade integration, East Asian governments negotiate trade deals with partners outside of their region at an early stage in their FTA policies. The book asks three main questions: Are there regional factors in East Asia encouraging countries to explore cross-regionalism early on? What are the most important criteria behind the cross-regional partner selection? How do cross-regional FTSs (CRTAs) influence their intra-regional trade initiatives? Through detailed country case studies from China, Japan, South Korea, Singapore, Thailand and Malaysia, we show the ways in which these governments seek to leverage their CRTAs in the pursuit of intra-regional trade integration objectives, a process that yields a much more permeated regionalism.

The Asia-Pacific Trade Agreement

The Asia-Pacific Trade Agreement
Author: Joong-Wan Cho
Publisher: UN
Total Pages: 570
Release: 2016
Genre: Political Science
ISBN:

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International trade and investment have enabled many countries in the Asia-Pacific region to boost economic growth and have lifted millions out of poverty. As the Asia-Pacific region continues to thrive economically, trade and investment barriers are being dissolved and eliminated. As countries begin to depend on each other more, trade policy is gradually becoming a useful measure to achieve inclusive and sustainable development. Trade and investment are linked to the environment and social issues; hence, their impacts are also multi-dimensional. It has now been recognized that sustainable production and consumption are essential for sustainable development. Countries realize that they are not able to approach global and regional problems on their own and require cooperation, both at the level of government and business. As a result, the region has been active in concluding regional cooperation frameworks which routinely are centered on trade and investment. In the meantime, business has forged regional integration through the formation of regional value chains and production networks while governments have paved the way for the expansion of such production networks through the formation of regional trade agreements and economic partnerships. Thus, the Asia Pacific Trade Agreement (APTA), which is the oldest preferential trade agreement in the region with a large consumer base, can play an important role in filling this gap. Given a slow progress in the multilateral negotiations in the WTO, especially when the members have started questioning the utility of the negotiations after 15 years, and a lack of consensus on how to move forward, the regional trade agreements can play a vital role. Even if they pose a challenge to the multilateralism, selected liberalisation of trade and economy in present time can become a building block for future multilateral negotiations. One of the reasons for the surge in these preferential trade agreements is to make binding commitments on WTO-plus and WTO-beyond issues. While there are many agreements that exist in Asia and the Pacific, there is no such attempt to consolidate them in one umbrella framework. Understanding the benefits of the consolidation, one such initiative was started by ESCAP a few years back. The RECI initiate for market integration could well be facilitated by APTA; however, it cannot deliver unless it transforms itself in a new generation agreement. Regional integration and cooperation are also important to meet the 2030 agenda for sustainable development. Instead of wasting resources in discussing a new institutional framework, it would be more effective to use the existing framework and for the Asia-Pacific economies, the APTA provides an existing institutional platform. The cases discussed in this book prepare a ground for the future, and it is expected that all the stakeholders, member States of ESCAP, private sector as well as researchers would benefit from this publication on APTA: South-South Regional Integration and Sustainable Development.

Regional Trade and Economic Integration

Regional Trade and Economic Integration
Author: Ram Upendra Das
Publisher: World Scientific
Total Pages: 253
Release: 2012
Genre: Business & Economics
ISBN: 9814374601

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The Asia-Pacific region has emerged as a dominant player in trade and will continue to be an influential component of world trade and economics. This book presents an informative outlook on the various regional and trade agreements (RTAs) and their beneficial effects on bilateral trade. In particular, the authors concentrate on India and China, the two major rising powers, and the impact of exchange of information and sharing of resources between these two countries in wide-ranging areas. It provides an incisive analysis and a roundup of all major RTAs and also presents an overview of all major agreements between the countries involved, which might propel their trade numbers and influence future economic engagements. The book also discusses possible obstacles that are encountered during the implementation of RTAs and circumvention routes that can be taken to ensure the successful execution of the agreements. International trade agreements, such as General Agreements on Trade and Tariffs, which have revolutionized the trade dynamics by opening up new areas of trade and formulating specific guidelines for the member countries to adhere to during trade negotiations, are discussed. The book also provides new insights into some of the issues under negotiation, such as sensitive lists, trade, investment cooperation, and trade in services. The existing economic cooperation arrangements in the region as well as those that are at various stages of study and negotiations, empirical insights and policy suggestions are elucidated in detail.

Empirical Studies of the Pattern of Bilateral Trade in the Asia-Pacific Region

Empirical Studies of the Pattern of Bilateral Trade in the Asia-Pacific Region
Author: Ahmad Fuad Rahmany
Publisher:
Total Pages: 140
Release: 1997
Genre: Asia
ISBN:

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This dissertation reports the results of three empirical studies concerning the pattern of bilateral trade among countries of East Asia and the Pacific Rim countries--the so-called 'Asia-Pacific' region. The first study tests several hypotheses concerning the determinants of bilateral intra-industry trade for a sample of 15 Asia-Pacific countries. It is concluded that similarity in relative factor endowments between two countries results in a higher share of intra-industry trade in the total bilateral trade (Sii) between them; however, that similarity in country size results in a lower Sii, which contradicts some findings of previous studies. Economies of scale were not found, while distance and tariffs were found to be significant determinants of intra-industry trade. The interesting result was that intra-industry trade appears to be characterized by vertically differentiated products, suggesting that the pattern of specialization was affected by the difference in technological capabilities between the developed and less developed countries in the region. The second study uses gravity-type models to make inferences about relative factor intensities of several manufacturing groups and to test the Linder hypothesis that the more similar the per capita incomes between two countries, the larger the trade in manufactured goods between them. It is found that for 1980-1993 there occurred no significant change in capital-labor intensities in the composition of the manufacturing sectors. This suggests that the relocation of manufacturing from developed to developing countries that occurred in search for low wage workers did not necessarily lead to less capital-intensive technologies. The Linder hypothesis was not found to be supported. The third study assesses the desirability of regionalization in the Asia-Pacific region. ASEAN was not, while APEC was found to be a natural trading bloc. This implies that geographical proximity between ASEAN countries is not sufficient to create a natural trading bloc. The strongest natural trading partners were found to be the East Asian countries and the U.S., suggesting that policies that exclude the U.S. from the East Asian trading bloc are welfare-worsening. The formation of a free trade area among a group of countries may result in a welfare gain if their ex-ante intra-bloc trade exceeds their external trade.

Regional Trade Agreements in Asia

Regional Trade Agreements in Asia
Author: Van Hoa Tran
Publisher: Edward Elgar Publishing
Total Pages: 304
Release: 2008-01-31
Genre: Business & Economics
ISBN: 9781782543503

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Tran Van Hoa and Charles Harvie present this timely and original study of the likely effects of new regional developments in Asia.