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EAST ASIAN REGIONAL TRADE AGREEMENTS: DO THEY PROMOTE GLOBAL FREE TRADE?
Author(s) -
Park Innwon
Publication year - 2006
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/j.1468-0106.2006.00334.x
Subject(s) - regionalism (politics) , east asia , economics , domino effect , regional trade , international economics , international trade , negotiation , computable general equilibrium , welfare , free trade , regional integration , microeconomics , geography , china , political science , market economy , archaeology , politics , law , democracy
. We quantitatively evaluate the effects different paths have on East Asian Regional Trade Agreements (RTA), which include expansionary, duplicate and overlapping RTAs. By applying a computable general equilibrium model analysis, we find that the static effect of existing, proposed and negotiating East Asian RTAs on world and members’ welfare is sufficiently positive. It will lead to non‐discriminatory global free trade, by triggering the domino effect of regionalism if the RTAs take an expansionary path by cooperating with each other, in contrast to competing to achieve the first mover advantage, or hub self‐interest.