The Welfare Analysis of a Free Trade Zone: Intermediate Goods and the Asian Tigers

Andrew Feltenstein () and Florenz Plassmann

The World Economy, 2008, vol. 31, issue 7, pages 905-924

Abstract: We analyse trade reform among the ASEAN countries, which recently began removing all mutual trade barriers. The standard method to avoid complete specialisation in traded goods is to distinguish goods both by physical type and place of origin (the so-called Armington assumption). This methodology is not suitable for the sort of intermediate goods produced by the ASEAN countries. We develop a computational approach in the context of a non-Armington dynamic general equilibrium model. Analysing the results of a calibrated version of the model, we find that trade liberalisation is generally welfare improving for the ASEAN countries. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd.

Date: 2008
View citations in EconPapers

Downloads: (external link)
http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9701.2008.01108.x link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:worlde:v:31:y:2008:i:7:p:905-924

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is edited by David Greenaway

More articles in The World Economy from Blackwell Publishing
Series data maintained by Christopher F. Baum ().