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Trade, Transparency, and Welfare in the Asia Pacific

Author

Listed:
  • Abe , Kazutomo

    (Tokyo Denki University)

  • Wilson, John S.

    (International Trade Group of Development Research Group)

Abstract
This paper examines the impact of reducing corruption and improving transparency to lower trade costs in the Asia Pacific Economic Cooperation region. The authors find, based on a computable general equilibrium model, significant potential trade and welfare gains for Asia Pacific Economic Cooperation members, with increased transparency and lower levels of corruption. Results suggest that trade in the region would increase by 11 percent and global welfare would expand by USD 406 billion by raising transparency to the average in the region. Most of the increase in welfare would take place in member economies undertaking reform. Among the reformers, the gross domestic product (GDP) of Vietnam, Thailand, Russia, and the Philippines would increase by approximately 20 percent. The benefits to Malaysia and China would also be substantial with increased transparency and lower levels of corruption.

Suggested Citation

  • Abe , Kazutomo & Wilson, John S., 2008. "Trade, Transparency, and Welfare in the Asia Pacific," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 12(2), pages 35-78, December.
    • Handle: RePEc:ris:eaerev:0129
    DOI: 10.11644/KIEP.JEAI.2008.12.2.188
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    Citations

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    Cited by:

    1. Hoekman, Bernard & Wilson, John S., 2010. "Aid for trade : building on progress today for tomorrow's future," Policy Research Working Paper Series 5361, The World Bank.
    2. Yann Duval & Chorthip Utoktham, 2011. "Intraregional Trade Costs in Asia: A Primer," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 18(2), pages 1-23, December.

    More about this item

    Keywords

    Trade; CGE Models; Transparency; Corruption;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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