Economic Implications of the Regional Comprehensive Economic Partnership for Asia and the Pacific

Cyn-Young Park (), Peter A. Petri () and Michael Plummer
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Peter A. Petri: Brandeis International Business School

No 639, ADB Economics Working Paper Series from Asian Development Bank

Abstract: The Regional Comprehensive Economic Partnership (RCEP) presents strong potential to mold regional trade and investment patterns well into the future and to influence the direction of global economic cooperation at a challenging time. This paper evaluates the RCEP and estimates its potential effects on income, trade, economic structure, factor returns, and employment using a computable general equilibrium model. The results suggest that the RCEP agreement could generate global income gains that will be almost twice as large as those of the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP). RCEP effects on the region’s trade will also significantly deepen regional production networks and raise productivity. At the sectoral level, exports and imports of nondurable and durable manufactures will experience the most growth. The CPTPP and RCEP will especially strengthen the region’s manufacturing supply chains, increasing wages and employment.

Keywords: computable general equilibrium; Comprehensive and Progressive Agreement on Trans-Pacific Partnership; free trade agreement; Regional Comprehensive Economic Partnership; rules of origin; supply chains (search for similar items in EconPapers)
JEL-codes: F13 F15 F17 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2021-10-15
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0639

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