Transparency, trade costs, and regional integration in the Asia Pacific, Vol. 1 of 1

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Transparency, trade costs, and regional integration in the Asia Pacific

Author:	Helble, Matthias; Shepherd, Ben; Wilson, John S.;	Collection Title:	Policy Research working paper ; no. WPS 4401
Country:	East Asia and Pacific; Asia;	Date Stored:	2007/11/14
Document Date:	2007/11/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	East Asia and Pacific; South Asia
Report Number:	WPS4401	SubTopics:	Economic Theory & Research; Emerging Markets; Free Trade; Debt Markets; Trade Policy
Volume No:	1 of 1

Summary: The authors show in this paper that increasing the transparency of the trading environment can be an important complement to traditional liberalization of tariff and non-tariff barriers. Our definition of transparency is grounded in a transaction cost analysis. The authors focus on two dimensions of transparency: predictability (reducing the cost of uncertainty) and simplification (reducing information costs). Using the Asia Pacific Economic Cooperation (APEC) member economies as a case study, the authors construct indices of importer and exporter transparency for the region from a wide range of sources. Our results from a gravity model suggest that improving trade-related transparency in APEC could hold significant benefits by raising intra-APEC trade by proximately USD 148 billion or 7.5 pecent of baseline trade in the region.


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