Governance, Corruption, and Trade in the Asia Pacific Region

This paper examines the impact of reducing corruption and improving transparency to lower trade costs in the Asia Pacific Economic Cooperation region. The authors find, based on a computable general equilibrium model, significant potential trade an...

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Bibliographic Details
Main Authors:	Abe, Kazutomo, Wilson, John S.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ADJUSTMENT MECHANISM AGRICULTURAL PRODUCTS APPLIED TARIFF AVERAGE COSTS BASE YEAR BILATERAL TARIFF BILATERAL TRADE CAPITAL FLOWS CAPITAL STOCK CHANGES IN TRADE COMMODITIES COMMODITY COMPARATIVE ADVANTAGES COMPETITIVENESS CONSTANT RETURNS TO SCALE CONSUMERS COST REDUCTION COST REDUCTIONS CUSTOMS CUSTOMS ADMINISTRATION CUSTOMS CLEARANCE CUSTOMS CLEARANCE PROCEDURES DEVELOPING ECONOMIES DISTORTION DISTRIBUTION COSTS DOLLAR VALUE DOMESTIC GOODS DOMESTIC MARKET DOMESTIC PRICE DOMESTIC PRODUCTION DUMMY VARIABLE DUMMY VARIABLES DUTCH DISEASE ECONOMETRIC ESTIMATES ECONOMIC COOPERATION ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC REFORM ELASTICITY ELASTICITY OF SUBSTITUTION EQUILIBRIUM ERROR TERM ERROR TERMS EXOGENOUS SHOCK EXOGENOUS VARIABLE EXOGENOUS VARIABLES EXPLANATORY VARIABLES EXPORT INDUSTRIES EXPORT MARKETS EXPORT PRICE EXPORT PRICES EXPORT TAX EXPORTER EXPORTERS EXPORTS FACTOR ANALYSIS FIXED EFFECT FIXED EFFECTS FOREIGN PRODUCERS FREE TRADE FREE TRADE AGREEMENTS FULL LIBERALIZATION FUTURE RESEARCH GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GENERAL EQUILIBRIUM MODELS GLOBAL COMPETITIVENESS GLOBAL TRADE GLOBAL TRADE ANALYSIS GRAVITY MODEL GRAVITY MODEL APPROACH GROSS DOMESTIC PRODUCT IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPORT IMPORT BARRIERS IMPORT COST IMPORT MARKETS IMPORT PRICE IMPORT PRICES IMPORT QUOTAS IMPORT TARIFF IMPORT TARIFFS IMPORT TAX IMPORT TAXES INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE INSTITUTIONAL CAPACITY INSURANCE INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL TRADE INTERNATIONAL TRANSPORTATION LABOR FORCE MACROECONOMIC INDICATORS MARKET PRICE MOST FAVORED NATION MULTILATERAL PROCESS MULTILATERAL TRADE NATIONAL INCOME NON-TARIFF BARRIERS OPENNESS OUTPUT PACIFIC REGION PATTERN OF TRADE PERFECT COMPETITION PREFERENTIAL TRADE PREFERENTIAL TRADE LIBERALIZATION PRICE OF IMPORTS PRODUCTION INPUTS PRODUCTION STRUCTURES REAL GDP REAL GROSS DOMESTIC PRODUCT REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGIONAL TRADE LIBERALIZATION REGULATORY ENVIRONMENT REGULATORY REFORMS RELATIVE PRICE STANDARD DEVIATION STANDARD DEVIATIONS STRUCTURAL REFORM SUBSTITUTION EFFECT SUPPLY CURVE TARIFF BARRIER TARIFF BARRIERS TARIFF DISPERSION TARIFF LINES TARIFF RATE TARIFF RATES TARIFF REDUCTION TAX RATES TAX REVENUE TAXATION TERMS OF TRADE TOTAL IMPORT TOTAL IMPORTS TRADE BALANCE TRADE BALANCES TRADE BARRIER TRADE BARRIERS TRADE BLOCKS TRADE COSTS TRADE DATA TRADE DIVERSION TRADE EXPANSION TRADE FACILITATION TRADE FLOWS TRADE LIBERALIZATION TRADE PARTNERS TRADE POLICIES TRADE POLICY TRADE POLICY REFORM TRADE RELATIONS TRADE TRANSACTION TRADE TRANSACTIONS TRADING PARTNER TRADING SYSTEM TRANSACTION COST TRANSACTION COSTS TRANSACTIONS COSTS TRANSMISSION MECHANISM TRANSPARENCY TRANSPORT COSTS TRANSPORTATION COSTS WEIGHTS WELFARE GAINS WELFARE IMPACTS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION WTO
Online Access:	http://documents.worldbank.org/curated/en/2008/09/9891620/governance-corruption-trade-asia-pacific-region http://hdl.handle.net/10986/6961

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Summary:	This paper examines the impact of reducing corruption and improving transparency to lower trade costs in the Asia Pacific Economic Cooperation region. The authors find, based on a computable general equilibrium model, significant potential trade and welfare gains for Asia Pacific Economic Cooperation members, with increased transparency and lower levels of corruption. Results suggest that trade in the region would increase by 11 percent and global welfare would expand by $406 billion by raising transparency to the average in the region. Most of the increase in welfare would take place in member economies undertaking reform. Among the reformers, the gross domestic product of Vietnam, Thailand, Russia, and the Philippines would increase approximately 20 percent. The benefits to Malaysia and China would also be substantial with increased transparency and lower levels of corruption.

Governance, Corruption, and Trade in the Asia Pacific Region

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