Analyzing Potential Effects of Preferential Liberalization in Some Asian Emerging Economies
BIMSTEC, a regional grouping of South and Southeast Asian countries, is heading towards an FTA for greater economic integration. The present paper examines the ex ante effects of the iniative by adopting SMART and GTAP models. Based on estimated export supply elasticity, the results of SMART simulat...
| Main Authors: | , |
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| Format: | Journal Article |
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Routledge
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/42057 |
| _version_ | 1848756313980403712 |
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| author | Kabir, M. Salim, Ruhul |
| author_facet | Kabir, M. Salim, Ruhul |
| author_sort | Kabir, M. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | BIMSTEC, a regional grouping of South and Southeast Asian countries, is heading towards an FTA for greater economic integration. The present paper examines the ex ante effects of the iniative by adopting SMART and GTAP models. Based on estimated export supply elasticity, the results of SMART simulation reveal that the highest net trade effect takes place for India, the biggest economy in the bloc, followed by Bangladesh for tariff elimination. The two countries also derive substantial welfare gains. The proportionate revenue loss is remarkably higher for smaller countries such as Nepal, Myanmar and Bangladesh. GTAP simulation suggests that Bangladesh incurs a net welfare loss by joining the FTA. The overall intra-bloc export is likely to increase. These imply the need for designing the compensation mechanism and technical support properly for the smaller economies to offset the possible adverse effects. |
| first_indexed | 2025-11-14T09:10:13Z |
| format | Journal Article |
| id | curtin-20.500.11937-42057 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:10:13Z |
| publishDate | 2011 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-420572017-09-13T15:59:56Z Analyzing Potential Effects of Preferential Liberalization in Some Asian Emerging Economies Kabir, M. Salim, Ruhul Economic Integration - Welfare - Trade Effect - SMART - GTAP trade liberalization Regionalization BIMSTEC, a regional grouping of South and Southeast Asian countries, is heading towards an FTA for greater economic integration. The present paper examines the ex ante effects of the iniative by adopting SMART and GTAP models. Based on estimated export supply elasticity, the results of SMART simulation reveal that the highest net trade effect takes place for India, the biggest economy in the bloc, followed by Bangladesh for tariff elimination. The two countries also derive substantial welfare gains. The proportionate revenue loss is remarkably higher for smaller countries such as Nepal, Myanmar and Bangladesh. GTAP simulation suggests that Bangladesh incurs a net welfare loss by joining the FTA. The overall intra-bloc export is likely to increase. These imply the need for designing the compensation mechanism and technical support properly for the smaller economies to offset the possible adverse effects. 2011 Journal Article http://hdl.handle.net/20.500.11937/42057 10.1080/10168737.2011.586805 Routledge fulltext |
| spellingShingle | Economic Integration - Welfare - Trade Effect - SMART - GTAP trade liberalization Regionalization Kabir, M. Salim, Ruhul Analyzing Potential Effects of Preferential Liberalization in Some Asian Emerging Economies |
| title | Analyzing Potential Effects of Preferential Liberalization in Some Asian Emerging Economies |
| title_full | Analyzing Potential Effects of Preferential Liberalization in Some Asian Emerging Economies |
| title_fullStr | Analyzing Potential Effects of Preferential Liberalization in Some Asian Emerging Economies |
| title_full_unstemmed | Analyzing Potential Effects of Preferential Liberalization in Some Asian Emerging Economies |
| title_short | Analyzing Potential Effects of Preferential Liberalization in Some Asian Emerging Economies |
| title_sort | analyzing potential effects of preferential liberalization in some asian emerging economies |
| topic | Economic Integration - Welfare - Trade Effect - SMART - GTAP trade liberalization Regionalization |
| url | http://hdl.handle.net/20.500.11937/42057 |