Does ASEAN Freer Trade Benefit Malaysia?

Othman, Jamal and Yaghoob, Jafari (2009): Does ASEAN Freer Trade Benefit Malaysia?

Abstract

This paper examines the impact of intra-ASEAN trade liberalization (AFTA) using a multi-country, computable general equilibrium model (GTAP Model) with special focus on Malaysia. The study considers the full elimination of intra-ASEAN import taxes and export subsidies. Results suggest that Malaysia‟s GDP would only increase marginally while the effects on the individual commodity sectors in the country differ substantially.

• Item Type: MPRA Paper
• Language: English
• Keywords: ASEAN Free Trade (AFTA), GTAP, CGE Trade Model, AFTA Impacts on Malaysia, Trade liberalization
• Subjects: F - International Economics > F1 - Trade > F15 - Economic Integration; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models

References

Acar, M., S. Alpay, E. Bakimli, and Z.Z. Koc (2009), “South – East Asian Integration in the Context of OIC: Implications of Free Trade Among Malaysia, Indonesia and Bangladesh,” Journal of Economic Integration, March 2009, 24(1): 1-18.

Asean Secretariat online; www.aseansec.org

Center for Global Trade Analysis, The Department of Agricultural Economics, Purdue University. [http://www.gtap.agecon.purdue.edu/].

The GTAP 7 Data Base: Global Trade, Assistance, and Production (2008), (ed. Badri Narayanan G and Terrie L. Walmsley, Center for Global Trade Analysis, Purdue University.

Hertel, T.W. (1997), Global Trade Analysis: Modeling and Applications, Cambridge University Press.