Transparency, Trade Costs, and Regional Integration in the Asia Pacific

39 Pages Posted: 20 Apr 2016

See all articles by Matthias Helble

Matthias Helble

Asian Development Bank; ADBI; ADBI

Ben Shepherd

World Bank - Development Research Group (DECRG); Groupe d'Economie Mondiale (GEM) - IEP Paris

John S. Wilson

World Bank - Development Research Group (DECRG)

Date Written: November 1, 2007

Abstract

The authors show in this paper that increasing the transparency of the trading environment can be an important complement to traditional liberalization of tariff and non-tariff barriers. Our definition of transparency is grounded in a transaction cost analysis. The authors focus on two dimensions of transparency: predictability (reducing the cost of uncertainty) and simplification (reducing information costs). Using the Asia Pacific Economic Cooperation (APEC) member economies as a case study, the authors construct indices of importer and exporter transparency for the region from a wide range of sources. Our results from a gravity model suggest that improving trade-related transparency in APEC could hold significant benefits by raising intra-APEC trade by proximately USD 148 billion or 7.5 pecent of baseline trade in the region.

Keywords: Economic Theory & Research, Free Trade, Emerging Markets, Debt Markets, Trade Policy

Suggested Citation

Helble, Matthias and Shepherd, Ben and Wilson, John S., Transparency, Trade Costs, and Regional Integration in the Asia Pacific (November 1, 2007). World Bank Policy Research Working Paper No. 4401, Available at SSRN: https://ssrn.com/abstract=1030467

Matthias Helble

Asian Development Bank ( email )

Philippines
006326831120 (Phone)

ADBI ( email )

Kasumigaseki Building 8F
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Tokyo, 100-6008
Japan

ADBI ( email )

Kasumigaseki Building 8F
3-2-5, Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

Ben Shepherd (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

Groupe d'Economie Mondiale (GEM) - IEP Paris ( email )

197 Boulevard Saint-Germain
Paris, 75007
France

HOME PAGE: http://gem.sciences-po.fr/

John S. Wilson

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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