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Preferential and Non-Preferential Approaches to Trade Liberalization in East Asia: What Differences Do Utilization Rates and Reciprocity Make?

dc.contributor.authorJayant Menon
dc.date.accessioned2015-01-30T14:45:57Z
dc.date.available2015-01-30T14:45:57Z
dc.date.issued2013-03-01
dc.identifier.urihttp://hdl.handle.net/11540/2095
dc.description.abstractPrevious studies on the impacts of free trade agreements (FTAs) in East Asia have assumed full utilization of preferences. The evidence suggests that this assumption is seriously in error, with the estimated uptake particularly low in East Asia. In this paper, we assume a more realistic utilization rate in estimating impacts. We find that actual utilization rates significantly diminish the benefits from preferential liberalization, but in a non-linear way. Reciprocity is an important motivation for pursuing FTAs over unilateral actions, although the Doha Round could deliver the same outcome if only it could be concluded. We isolate the impact of reciprocity, but find that the additional benefits also depend on utilization rates. Furthermore, the potential for trade deflection combined with possible retaliatory actions could negatively affect members and non-members. In the absence of Doha, the multilateralization of preferences, even without reciprocity, is the practical route that is most likely to deliver the greatest benefits to members. Global liberalization, while difficult to attain, would maximize world welfare while posing no risk in its realization.
dc.languageEnglish
dc.publisherAsian Development Bank
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.titlePreferential and Non-Preferential Approaches to Trade Liberalization in East Asia: What Differences Do Utilization Rates and Reciprocity Make?
dc.typeWorking Papers
dc.subject.expertDevelopment Economics
dc.subject.expertRegional Economic Development
dc.subject.expertEconomic Impact
dc.subject.expertAsian Development Bank
dc.subject.expertDevelopment
dc.subject.expertEconomic Boom
dc.subject.expertRegional Economic Integration
dc.subject.expertGood Governance
dc.subject.expertGovernance Approach
dc.subject.adbEconomic planning
dc.subject.adbEconomic structure
dc.subject.adbGrowth policy
dc.subject.adbTrade relations
dc.subject.adbTrade policy
dc.subject.adbTrade policy
dc.subject.adbEconomic development
dc.subject.adbEconomies in transition
dc.subject.adbInternational economy
dc.subject.adbBorder integration
dc.subject.adbEconomic integration
dc.subject.adbGross domestic product
dc.subject.adbTrade policy
dc.subject.adbInstitutional Framework
dc.subject.adbPublic Administration
dc.subject.adbBusiness Ethics
dc.subject.naturalRegional economics
dc.subject.naturalEconomic forecasting
dc.subject.naturalEconomic development projects
dc.subject.naturalSuccess in business
dc.subject.naturalBusiness
dc.subject.naturalFree trade
dc.subject.naturalBusiness
dc.subject.naturalEconomics
dc.subject.naturalCommunication in economic development
dc.subject.naturalRestraint of trade
dc.subject.naturalInternational economic integration
dc.subject.naturalTrade blocs
dc.subject.naturalEast-West trade
dc.title.seriesRegional Economic Integration Working Papers
dc.title.volumeno 109
dc.contributor.imprintAsian Development Bank
oar.themeEconomics
oar.themeGovernance
oar.adminregionEast Asia Region
oar.countryChina, People's Republic of
oar.countryHong Kong, China
oar.countryRepublic of Korea
oar.countryMongolia
oar.countryTaipei,China
oar.identifierOAR-001563
oar.authorMenon, Jayant
oar.importtrue
oar.googlescholar.linkpresenttrue


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