Free Trade Areas in East Asia: Discriminatory or Non-Discriminatory?

28 Pages Posted: 14 Jan 2005

Abstract

The debates on regional trade arrangements in East Asia focus on whether the RTAs can be net trade creating or diverting, and whether they impede multilateral trade liberalisation or not. This paper attempts to answer these questions by quantitatively estimating the economic impact of possible East Asian free trade areas based on a bilateral gravity model, and evaluating the main characteristics of the proposed FTAs. We find that the trade creation effect expected from the proposed East Asian FTAs such as a China-Japan-Korea or an ASEAN plus three (China, Japan, Korea) FTA will be significant enough to overwhelm the trade diversion effect. We also judge that East Asian FTAs will likely be a building block for a global free trade.

Suggested Citation

Lee, Jong-Wha and Park, Innwon, Free Trade Areas in East Asia: Discriminatory or Non-Discriminatory?. The World Economy, Vol. 28, No. 1, pp. 21-48, January 2005. Available at SSRN: https://ssrn.com/abstract=648754

Jong-Wha Lee (Contact Author)

Korea University ( email )

Anam-dong, Sungbuk-Ku
Dept. of Economics
Seoul, 136-701
82-2-3290-2216 (Phone)
82-2-928-4948 (Fax)

Innwon Park

Korea University ( email )

Register to save articles to
your library

Register

Paper statistics

Downloads
23
Abstract Views
1,392
PlumX Metrics