Park, Innwon and Park, Soonchan and Kim, Sangkyom (2010): A Free Trade Area of the Asia Pacific (FTAAP): Is It Desirable?
Preview |
PDF
MPRA_paper_26680.pdf Download (373kB) | Preview |
Abstract
This paper evaluates whether the proposed FTAAP is a desirable policy option for APEC member economies and the world economy. More specifically, this paper quantitatively investigates whether the FTAAP satisfies conditions for a trade bloc to generate positive and sufficient net trade creation effect. In addition, this paper estimates the likely impact of the FTAAP by using a CGE model analysis. Based on statistical data analysis, this paper strongly argues that the FTAAP can be a desirable regional trade bloc able to generate positive gains from freer trade. From the ex-ante scenario analysis using both static and capital accumulation CGE Models, this paper concludes that the FTAAP has great potential for improving welfare of participating APEC economies and will boost economic growth in the region. In particular, the FTAAP would be even better if it can be linked with liberalization of trade in services and enhanced trade facilitation.
Item Type: | MPRA Paper |
---|---|
Original Title: | A Free Trade Area of the Asia Pacific (FTAAP): Is It Desirable? |
English Title: | A Free Trade Area of the Asia Pacific (FTAAP): Is It Desirable? |
Language: | English |
Keywords: | Regional Trade Agreement (RTA), APEC, FTAAP, Computable General Equilibrium (CGE), Trade in Services, Trade Facilitation |
Subjects: | F - International Economics > F1 - Trade > F15 - Economic Integration F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations |
Item ID: | 26680 |
Depositing User: | Innwon Park |
Date Deposited: | 15 Nov 2010 03:13 |
Last Modified: | 26 Sep 2019 19:09 |
References: | ABAC. 2006. Driving Forward a Prosperous and Harmonized APEC Community, Report to APEC Economic Leaders, Hanoi, Vietnam. ADB. 2008. “Emerging Asian Regionalism: A Partnership for shared Prosperity,” ADB. Anderson, K., J. Francois, T. Hertel, B. Hoekman and W. Martin. 2000. “Potential Gains from Trade Reform in the New Millennium,” Centre for International Economic Studies, University of Adelaide APEC. 2007. “Strengthening Regional Economic Integration," SOM Paper for 15th APEC Economic Leaders' Meeting, APEC APEC. 2005. “A Mid-Term Stocktake of Progress Towards the Bogor Goals - Busan Roadmap to Bogor Goals,” 2005/AMM/002anx1rev1 Baldwin, R. E. 1993, “A Domino Theory of Regionalism,” NBER Working Paper Series 4465. Baldwin, R.E. 1992. “Measurable Dynamic Gains From Trade,” Journal of Political Economy 100(1), (February), pp. 162-174. Baldwin, R.E. 1989. “The Growth Effects of 1992,” Economic Policy 4(9), (October), pp. 247-283. Bergsten, C. Fred. 2007. “A Free Trade Area of the Asia-Pacific in the Wake of the Faltering Doha Round: Trade Policy Alternatives for APEC,” Chapter 2 in An APEC Trade Agenda?: The Political Economy of a Free Trade Area of the Asia-Pacific, edited by Charles E Morrison and Eduardo Pedrosa, A Joint Study by ABAC and PECC, Institute of Southeast Asian Studies Singapore. Bhagwati, Jagdish, David Greenaway and Arvind Panagariya. 1998. “Trading Preferentially: Theory and Policy.” The Economic Journal, 108, pp. 1128-1148. Brilliant, Myron. 2008. “A Free Trade Area of the Asia-Pacific: An Idea with Merit, but Is it Feasible?” Tuesday, July 1, Brookings Institution. Brown, D. K., Alan V. Deardorff, and Robert M. Stern. 2001. “Impacts on NAFTA Members of Multilateral and Regional Trading Arrangements and Initiatives and Harmonization of NAFTA’s External Tariffs.” Discussion Paper No 471, Research Seminar in International Economics. Ann Arbor, Mich.: School of Public Policy, The University of Michigan. Brown, D., A. Deardorff, A. Fox, and R. M. Stern, 1996. “Computational analysis of goods and services liberalization in the Uruguay Round,” in W. Martin and L. A. Winters (eds.), The Uruguay Round and Developing Economies, Cambridge University Press. Deardorff, A.V. and R.M. Stern. 2001. “International Provision of Trade Services, Trade and Fragmentation,” Review of International Economics 9, pp. 233-248. Dee, P. and K. Hanslow, 2001. “Multilateral liberalization of services trade, in R. M. Stern (ed.), Services in the International Economy,” University of Michigan Press, Ann Arbor. Elek, Andrew. 2005. APEC After Busan: New Direction, APEC Study Series 05-01, Seoul: Korea Institute for International Economic Policy. Feridhanusetyawan, Tubagus. 2005. "Preferential Trade Agreements in the Asia-Pacific Region," IMP Working Paper WP/05/149, IMF. Francois, J.H., B. McDonald and H. Nordstrom. 1999. “Trade Liberalization and Investment in a Multilateral Framework,” in Dynamic Issues in Commercial Policy Analysis. R. Baldwin and J.F. Francois, eds. CEPR: London. Hardin, A. and L. Holmes. 1997. “Services Trade and Foreign Direct Investment,” Staff Research Paper, Industry Commission, Australian Government Publishing Services: Canberra. Hatakeyama, Noboru. 2007. "The Creation of a Free Trade Area of the Asia Pacific," Paper presented at a Joint Conference of the Japan Economic Foundation and the Peterson Institute for International Economics. Hertel, T.W. 1997. Global Trade Analysis: Modeling and Applications. Cambridge University Press: New York. Hertel, T., K. Anderson and J. Francois. 2000. “Agriculture and Non-Agricultural Liberalization in the Millennium Round”, CIES Working Paper No.16. Hoekman, B. 1995. “Assessing the General Agreement on Trade in Services,” in The Uruguay Round and the Developing Economies. W. Martin and A. Winters, eds. World Bank JETRO. 2003. “Prospects for Free Trade Agreements in East Asia,” Overseas Research Department, Japan External Trade Organization. Kawai, Masahiro and Ganeshan Wignaraja. 2008. “Regionalism as an Engine of Multilateralism: A Case for a Single East Asian FTA” Working Paper Series on Regional Economic Integration No. 14, ADB.. Kawai, Masahiro. 2007. “Evolving Economic Architecture in East Asia,” ADB Institute Discussion Paper No. 84, ADB Institute. Kawai, Masahiro. 2004. “Regional Economic Integration and Cooperation in East Asia,” Paper prepared for the Experts’ Seminar on the Impact and Coherence of OECD Country Policies on Asian Developing Economies. Kim, Sangkyom, Innwon Park, Soonchan Park, and Sung-Hoon Park. 2006. Trade Facilitation in APEC: Economic Impacts and Policy Options (in Korean), Policy Analyses 06-05, Korea Institute for International Economic Policy. Konan, D. E. and K. Maskus. 2006. “Quantifying the impact of services liberalization in a developing economy”, Journal of Development Economics 81, 142-162. Lee, Jong-Wha and Innwon Park. 2005. “Free Trade Areas in East Asia: Discriminatory or Nondiscriminatory?” The World Economy, Vol. 28, Issue 1, pp. 21-48. Lu, Feng .2003. “Free Trade Area: Awakening regionalism in East Asia,” Working Paper Series E2003010, China Center for Economic Research. Panagariya, Arvind. 1999. “The Regionalism Debate: An Overview,” The World Economy, 22, pp. 477-511. Park, Innwon. 2008. “Regional Trade Agreements in East Asia: Will They Be Sustainable?” MPRA Paper, University Library of Munich, Germany. Park, Innwon . 2006. "East Asian Regional Trade Agreements: Do they promote Global Free Trade?" Pacific Economic Review, 11: 4. Park, Innwon and Soonchan Park. 2009a. “Consolidation and Harmonization of Regional Trade Agreements (RTAs): A Path Toward Global Free Trade,” MPRA Working Paper No. 14217, University of Munich, Germany. Park, Innwon and Soonchan Park. 2009b. “Regional Liberalization of Trade in Services,” MPRA Working Paper No. 19758, University of Munich, Germany. Park, Donghyun, Innwon Park and Gemma Esther B. Estrada. 2009. “Prospects of ASEAN-China Free Trade Area (ACFTA): A Qualitative and Quantitative Analysis,” China & World Economy, Vol. 17, No. 4, pp. 104-120. Plummer, Michael G. 2007. “’Best Practices’ in Regional Trading Agreements: An Application to Asia.” The World Economy 30: 1771-1796. Samuelson, P. A. 1954. The transfer problem and transport costs, ii: Analysis of effects of trade impediments, Economic Journal 64(254): 264–289. Scollay, Robert. 2007. “FTAAP: Why and How? Policy, Legal and Institutional Issues,” submitted to APEC Trade Policy Dialogue – Strengthening Regional Economic Integration, April 22 (2007/SOM2/TPD/004) Scollay, Robert. 2005. "Preliminary Assessment of the Proposal for a Free Trade Area of the Asia-Pacific (FTAAP)", PECC Trade Forum and ASCC Joint Meeting. 22-24 May 2005. Jeju. Korea. Scollay, Robert. 2004. " Regional Trade Liberalization in East Asia and the Asia-Pacific: The Role of China, " Working Paper Series No.35, Latin America/Caribbean and Asia/Pacific Economics and Business Association. Scollay, Robert and John Gilbert. 2000. "Measuring the Gains from APEC Trade Liberalisation: An Overview of CGE Assessments,” The World Economy, Vol. 23, Issue 2, pp. 175-197. Soesastro, Hadi. 2003. “Challenges to APEC Trade Policy: The Doha Development Agenda and RTAs/FTAs,” CSIS Working Paper Series WPE 069, Centre for Strategic and International Studies, Jakarta, Indonesia. Stoler, Andrew L. 2007. “A Free Trade Area of the Asia-Pacific,” Notes for Remarks, Institute for International Trade, Presentation Material. UNCTAD. 2009. Handbook of Statistics. UNESCAP. 2009. Trade Statistics in Policymaking: A Handbook of Commonly Used Trade Indices and Indicators. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/26680 |