Transforming East Asia: Regional Integration in a Trade War Era

Karen Jackson; Oleksandr Shepotylo

doi:10.1007/s11079-022-09698-y

Transforming East Asia: Regional Integration in a Trade War Era

Karen Jackson^*, Oleksandr Shepotylo

^*Corresponding author for this work

Economics, Finance and Entrepreneurship

Research output: Contribution to journal › Article › peer-review

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.

Original language	English
Number of pages	16
Journal	Open Economies Review
Early online date	10 Nov 2022
DOIs	https://doi.org/10.1007/s11079-022-09698-y
Publication status	E-pub ahead of print - 10 Nov 2022

Bibliographical note

© 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.

Keywords

China-Japan-Korea Free Trade Agreement
China-US trade war
Gravity model

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10.1007/s11079-022-09698-y

s11079-022-09698-y
© 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.
Final published version, 1.02 MBLicence: CC BY 4.0

Cite this

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KW - Gravity model

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Transforming East Asia: Regional Integration in a Trade War Era

Abstract

Bibliographical note

Keywords

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