Commercial Links between Western Europe and East Asia: Retrospect and Prospects

CEPR Discussion Paper Series Number 1760

Posted: 8 May 1998

See all articles by Kym Anderson

Kym Anderson

University of Adelaide - Centre for International Economic Studies (CIES); Centre for Economic Policy Research (CEPR); Australian National University

Joseph F. Francois

University of Bern - Department of Economics; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Date Written: December 1997

Abstract

East Asia has rapidly become the third centre of gravity for global economic activity. North America is relatively well integrated with East Asia, but Europe is not. This paper explores the extent to which economic growth and trade policy developments over the next decade or so will strengthen European-East Asian economic integration, and what scope there is to facilitate that set of bilateral relationships. Use is made of a modified version of the global CGE model known as GTAP to project the world economy to 2010 under various scenarios including Uruguay Round implementation, a transatlantic free trade agreement, APEC liberalization, and a new WTO multilateral round. The bilateral trade consequences of economic growth and Uruguay Round implementation highlight the fact that as East Asia's relative importance in the world economy keeps growing, so too does its importance to Europe. The relative importance of Europe to East Asia is projected to grow very little, however, although in absolute terms the volume of that trade still grows enormously.

JEL Classification: F11, F13, F14, F15, F17

Suggested Citation

Anderson, Kym and Francois, Joseph F, Commercial Links between Western Europe and East Asia: Retrospect and Prospects (December 1997). CEPR Discussion Paper Series Number 1760. Available at SSRN: https://ssrn.com/abstract=74693

Kym Anderson (Contact Author)

University of Adelaide - Centre for International Economic Studies (CIES) ( email )

School of Economics
Adelaide SA 5005
Australia
+61 8 8313 4712 (Phone)
+61 8 8223 1460 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Australian National University ( email )

Arndt-Corden Dept of Economics
Coombs Building
Canberra, AK ACT 2600
Australia
+61 8 8313 4712 (Phone)

HOME PAGE: http://publicpolicy.anu.edu.au/crawford_people/content/staff/acde/kanderson.php

Joseph F Francois

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Vienna Institute of International Economic Studies (WIIW) ( email )

Oppolzergasse 6
A-1010 Vienna
Austria

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
611
PlumX Metrics