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GTAP Resource #2634

"Impact of trade liberalisation on the environment---Illustrations from East Asia"
by Mukhopadhyay, Kakali and Paul Thomassin

The expansion of the economies of east and south east Asia over the last 15-20 years have heralded one of the most dramatic periods of economic growth and development the world has experienced. The move in the region is now toward concluding free trade agreements (FTAs) and economic partnership agreements (EPAs). Each country in East Asia, including China and Japan, is accelerating its move towards concluding such agreements with other countries in the region. It aims to create a stable, prosperous and highly competitive region by the year 2020, with free movement of goods and services, freer movements of capital, equitable economic development, and reduced poverty and
socio-economic disparities.
Economic growth has often also been accompanied by environmental degradation of both the national and international environment. One of the on-going debates in trade discussions is how to protect the environment when multi-lateral regional trade agreements are being negotiated. The regional economic integration within ASEAN+3 and their possible impact on environment in 2020 using GTAP model are the subject of this article.
Towards this direction the objective of the present study is to estimate the detailed economic and environmental impacts of trade liberalization in East Asian countries by the year 2020. On the whole, the analysis of this result clearly shows that ASEAN+3 agreements compared to other regional cluster will be more beneficial in terms of GDP growth and thus the welfare for all of the participating countries in the year 2020. The GHG indicator in the model explains that the tariff reduction strategy is not environment friendly for the developed countries like Japan and Korea. On the other hand, among developing countries Thailand would benefit by trade liberalization which is growth inducing and pollution reducing.

Resource Details (Export Citation) GTAP Keywords
Category: 2008 Conference Paper
Status: Published
By/In: Presented at the 11th Annual Conference on Global Economic Analysis, Helsinki, Finland
Date: 2008
Created: Mukhopadhyay, K. (4/9/2008)
Updated: Batta, G. (4/10/2008)
Visits: 1,859
- Asia (East)

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