GTAP Resources: Resource Display
| GTAP Resource #3265 |
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"The Economic Impact of the Thailand-Australia Free Trade Agreement (TAFTA) and the Thailand-New Zealand Closer Economics Partnership (TNZCEP)" by Wittayarungruangsri, Sarut, Rachda Chiasakul and Chotiga Khanti-Akom Abstract This paper studies the effects of the Thailand-Australia Free Trade Agreement (TAFTA) and the Thailand-New Zealand Closer Economic Partnership (TNZCEP) on the Thai economy. Despite a number of studies on this issue, the literature tends to focus on the effects of reduction in duty but ignore those of reduction in trade-in-services barriers. This paper adds to the literature by including the reduction in service barriers into the analysis A CGE model, GTAP, is employed here. In our simulation, all duties are reduced to zero as a consequence of the agreements. A complication related to services trade arises in that barriers to trade in services are not expressed in absolute or percentage terms as trade in goods. To overcome this problem, we utilize the Trade Restrictiveness Index, developed by the Productivity Commission and the Australian National University. Upon our data manipulation, barriers to trade in services are expressed in percentage term here. The following key results emerge. Both TAFTA and TNZCEP benefit Thailand as a whole regardless of the degree of openness to trade in services. Yet Thailand gains the most when all barriers are removed (Scenario B). As regards change in sectoral output, sectors negatively affected by the agreements include milk and dairy products, textile and clothing, and agriculture. Thai exporters in business service and transportation tend to benefit the most as they gain highest percentage changes in exports to the two trading partners. By contrast, producers in communication, utilities, and meat and poultry, will experience the greatest pressure arising from higher import from the trading partners. |
| Resource Details (Export Citation) | GTAP Keywords | ||||||||||||||||
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- Preferential trading arrangements - Trade in services - The GTAP Data Base and extensions |
| Attachments |
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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  2010 Conference Paper (181.5 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
