Geographical and Product Decomposition of the Trade Agreements Effects in the Asia-Pacific Region

Dmitriy Aleksandrovich Izotov ()
Additional contact information
Dmitriy Aleksandrovich Izotov: Economic Research Institute FEB RAS

Spatial Economics=Prostranstvennaya Ekonomika, 2023, issue 3, 83-112

Abstract: Trade integration associated with globalization and regionalization processes has contributed to the expansion of trade among countries of Asia-Pacific Region (APR), with the contribution of the globalization process to the integration effect being dominant. This study tests the hypothesis that regionalization associated with trade agreements has stimulated trade in certain product markets concentrated within a particular geographical part of the APR. Disaggregation estimates of integration effects were made based on a gravity model for manufactured and primarily products traded in the Western macrozone, in the Eastern macrozone and between macrozones of the APR respectively for the period 1996–2021. The estimates confirmed the hypothesis that the positive effects of regionalization in the APR stimulated only by the market for manufactured products traded in the Western macrozone and between the APR macrozones. Correspondingly, the positive effects of regionalization for the Eastern macrozone countries for manufactured products segment during the period under analysis were associated with trade agreements exclusively with East Asian countries located in the Western macrozone. For the APR countries specializing in exports of primarily products, the long-term strategy of expanding trade agreements was not significant in contrast to countries specializing in trade of manufactured products and promoting industrial cooperation. The assessments revealed the suppression of primarily products trade within the Western macrozone, clearly indicating the targeted priority of trade agreements in expanding of manufactured products trade. The estimates also identified reasons for the dominance of globalization in the effects of integration in the APR: the functioning of the commodities market; the expansion of trade agreements among Eastern macrozone countries, driven by political rather than economic motives

Keywords: exports; domestic trade; product flows; tariff burden; globalization process; regionalization process; trade agreement effect; border effect; trade agreement; Asia-Pacific Region; Western macrozone; Eastern macrozone (search for similar items in EconPapers)
JEL-codes: C54 F15 F60 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.spatial-economics.com/images/spatial-ec ... 023.3.083-112.Izotov (application/pdf)
http://spatial-economics.com/eng/arkhiv-nomerov/2023-3/1099-SE-2023-3-83-112 (text/html)

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:far:spaeco:y:2023:i:3:p:83-112

DOI: 10.14530/se.2023.3.083-112

Access Statistics for this article

Spatial Economics=Prostranstvennaya Ekonomika is currently edited by Pavel Minakir

More articles in Spatial Economics=Prostranstvennaya Ekonomika from Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia) Contact information at EDIRC.
Bibliographic data for series maintained by Sergey Rogov ().