Transforming East Asia: Regional Integration in a Trade War Era

Abstract

This paper evaluates the trade and welfare implications of further East Asian trade integration, through the signing of the China-Japan-Korea FTA, and continued trade tensions between the US and China. Our analysis uses a structural gravity approach to explore the effects of these cooperative and non-cooperative trade policies. Our key findings are: (i) for China, the FTA can compensate for continued trade tensions (ii) in terms of the FTA and for the members involved, reductions in tariffs are expected to lead to larger welfare gains compared to those from lower NTBs (iii) for the members involved, a deeper agreement will be more welfare enhancing. Overall, East Asian integration appears to be a more appealing prospect in light of tensions with the US.

Publication DOI: https://doi.org/10.1007/s11079-022-09698-y
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
Additional Information: © 2022, The Author(s). This article is licensed under a Creative Commons Attribution 4.0 International License http://creativecommons.org/licenses/by/4.0/, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made.
Uncontrolled Keywords: China-Japan-Korea Free Trade Agreement,China-US trade war,Gravity model,Economics and Econometrics
Publication ISSN: 1573-708X
Full Text Link:
Related URLs: https://link.sp ... 079-022-09698-y (Publisher URL)
PURE Output Type: Article
Published Date: 2022-11-10
Published Online Date: 2022-11-10
Accepted Date: 2022-10-12
Authors: Jackson, Karen
Shepotylo, Oleksandr (ORCID Profile 0000-0003-4990-6025)

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