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Governance, corruption, and trade in the Asia Pacific region
 
Author:Abe, Kazutomo; Wilson, John S.; Collection Title:Policy Research working paper ; no. WPS 4731
Country:East Asia and Pacific; Asia; Date Stored:2008/09/29
Document Date:2008/09/01Document Type:Policy Research Working Paper
SubTopics:Economic Theory & Research; Emerging Markets; Currencies and Exchange Rates; Free Trade; Trade PolicyLanguage:English
Region:East Asia and Pacific; South AsiaReport Number:WPS4731
Volume No:1 of 1  

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.

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