A Free Trade Area of the Asia Pacific (FTAAP): Is It Desirable?

23 Pages Posted: 28 Aug 2013 Last revised: 1 Nov 2016

See all articles by Sangkyom Kim

Sangkyom Kim

Korea Institute for International Economic Policy (KIEP)

Innwon Park

Korea University

Soonchan Park

Kongju National University

Date Written: March 27, 2013

Abstract

This paper evaluates whether the proposed FTAAP is a desirable policy option for APEC member economies and the world economy. More specifically, this paper qualitatively investigates whether the FTAAP satisfies conditions for a trade bloc to generate positive and sufficient net trade creation effect. In addition, this paper estimates the likely impact of the FTAAP by using a CGE model analysis. From the qualitative analysis based on statistical data, this paper strongly argues that the FTAAP can be a desirable regional trade bloc able to generate positive gains from freer trade. From the ex-ante scenario analysis using both static and capital accumulation CGE Models, this paper concludes that the FTAAP has great potential for improving welfare of participating APEC economies and will boost economic growth in the region. In particular, the FTAAP would be even better if it can be linked with liberalization of trade in services and enhanced trade facilitation.

Keywords: Regional Trade Agreement (RTA), APEC, FTAAP, Computable General Equilibrium (CGE), Trade in Services, Trade Facilitation

JEL Classification: F13, F15, F42

Suggested Citation

Kim, Sangkyom and Park, Innwon and Park, Soonchan, A Free Trade Area of the Asia Pacific (FTAAP): Is It Desirable? (March 27, 2013). Journal of East Asian Economic Integration, Vol. 17, No. 1 (March 2013) 3-25. Available at SSRN: https://ssrn.com/abstract=2317160 or http://dx.doi.org/10.2139/ssrn.2317160

Sangkyom Kim

Korea Institute for International Economic Policy (KIEP) ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Innwon Park (Contact Author)

Korea University ( email )

Soonchan Park

Kongju National University ( email )

527 Yesan
340-800 Choongnam
Korea

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