The Impact of Various Trade Arrangements on Malaysia’s Bilateral Trade Costs
Tan Jiunn Woei (),
Chin Lee (),
Azali Mohamed () and
Normaz Wana Ismail ()
Additional contact information
Tan Jiunn Woei: Faculty of Economics and Management Universiti Putra Malaysia 43400 Serdang, Selangor MALAYSIA
Azali Mohamed: Faculty of Economics and Management Universiti Putra Malaysia 43400 Serdang, Selangor MALAYSIA
Normaz Wana Ismail: Faculty of Economics and Management Universiti Putra Malaysia 43400 Serdang, Selangor MALAYSIA and Institute of Agricultural and Food Policy Studies Universiti Putra Malaysia 43400 Serdang Selangor MALAYSIA
Authors registered in the RePEc Author Service: M Azali and
M. Azali
Jurnal Ekonomi Malaysia, 2018, vol. 52, issue 2, 69-80
Abstract:
The benefits of trade agreements on trade activities are notably acknowledged but the impact on bilateral trade costs remains obscure and have to be further examined. First, this study will construct the micro measure of bilateral trade cost, and then the constructed trade costs will be utilized to estimate the impact of trade arrangements on trade costs for Malaysia and her trading partners for the year 2002-2012. The results show that all four types of trade arrangements, namely the Multilateral Trade Arrangement (MTA), Regional Trade Arrangement (RTA), Bilateral Free trade Arrangement (BFTA) and bilateral trade Arrangement (BTA) have lowered trade costs. In addition, the different types of trade arrangements result in a variation of trade costs, where regional trade arrangements are expected to reduce bilateral trade costs the most. However empirical result shows otherwise where BFTA gave the highest reduction in trade costs for Malaysia. As to date, the number of BFTA that has been signed is far behind BTA. It is recommended that Malaysia realign its focus towards BFTA with the hope that Malaysia and her trading partners will experience a greater reduction of trade costs in the coming years.
Keywords: Trade costs; trade arrangement (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://www.ukm.my/jem/wp-content/uploads/2021/06/jeko_522-6.pdf (application/pdf)
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: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:52:y:2018:i:2:p:69-80
DOI: 10.17576/JEM-2018-5202-6
Access Statistics for this article
More articles in Jurnal Ekonomi Malaysia from Faculty of Economics and Business, Universiti Kebangsaan Malaysia Contact information at EDIRC.
Bibliographic data for series maintained by Muhammad Asri Abd Ghani ().