Indo-Pacific cooperation: what do trade simulations indicate?

Mohammad Masudur Rahman (), Chanwahn Kim () and Prabir De ()
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Mohammad Masudur Rahman: The University of Waikato
Chanwahn Kim: Hankuk University of Foreign Studies
Prabir De: Research and Information System for Developing Countries (RIS)

Journal of Economic Structures, 2020, vol. 9, issue 1, 1-17

Abstract: Abstract This paper investigates the potential economic effect of ‘Indo-Pacific’ regional economic cooperation and compares with the extended CPTPP. The Computable General Equilibrium (CGE) results show that the quadrilateral alliance between the United States, Japan, Australia, and India shows although a substantial economic gain whilst South and East Asia join with the Indo-Pacific cooperation, the economic benefit would be enormous. The findings also indicate that South and East Asian improved trade facilitation could bring huge gain as a large part of Indo-Pacific trade has remained unrealized. The trade transaction cost is one of the major trading barriers prohibiting the growth of Indo-Pacific intra-regional trade. The study reinforces that improvement in infrastructure and connectivity that leads to less trade transportation costs should be a necessary step to realise Indo-Pacific trade potential.

Keywords: Indo-Pacific; Trade; Regional integration; Trade facilitation; CGE (search for similar items in EconPapers)
JEL-codes: F14 F15 F17 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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DOI: 10.1186/s40008-020-00222-4

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