Economic and Environmental Impact of Free Trade in East and South East Asia

Economic and Environmental Impact of Free Trade in East and South East Asia

von: Kakali Mukhopadhyay, Paul J. Thomassin

Springer-Verlag, 2009

ISBN: 9789048135073 , 209 Seiten

Format: PDF

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Economic and Environmental Impact of Free Trade in East and South East Asia


 

Foreword

4

Preface

6

Acknowledgements

8

Contents

10

List of Figures

13

List of Tables

14

1 Introduction

17

1.1 Globalization and Regionalization

17

1.2 Basic Issues of Regional Trade Agreements

18

1.3 Proliferation of Regional Trade Agreements

19

1.4 Global Development of RTAs

22

1.5 Economic Integration in East and South East Asia

23

1.5.1 FTA in East and South East Asia---A Brief History

24

1.5.1.1 APEC

24

1.5.1.2 ASEAN

25

1.5.1.2 ASEAN Vision 2020

27

1.5.1.2 ASEAN+3

27

1.5.2 Factors Affecting FTA Initiatives in East and South East Asia

28

1.5.3 Features of Existing RTAs in East and South East Asia

29

1.5.4 FTA Initiatives in East and South East Asia

29

1.5.4.1 China-ASEAN

29

1.5.4.2 Japan-ASEAN

30

1.5.4.3 Republic of Korea-ASEAN

31

1.5.4.4 ASEAN Countries FTA in East and South East Asia

31

1.5.5 Efforts and Time Frame for Economic Integration

33

1.6 Environmental Degradation

34

1.7 Objective

36

1.8 Structure of the Book

36

2 Review of Literature

38

2.1 Introduction

38

2.2 FTAs/RTAs Around the World

39

2.3 FTAs/RTAs in East and South East Asian Region

41

2.4 Impact of FTAs and RTAs on the Environment

51

3 Features of the East and South East Asian Economies

56

3.1 Introduction

56

3.2 Population

57

3.3 Economic Growth of the East and SouthEast Asian Economies

58

3.3.1 GDP Growth

58

3.3.2 Agricultural Sector in East and South East Asia

61

3.3.3 Industrial Sector in East and South East Asia

65

3.3.4 Manufacturing Sector in East and SouthEast Asia

68

3.3.5 Service Sector in East and SouthEast Asia

70

3.4 Poverty and Unemployment

72

3.5 The Structure of Foreign Trade and FDI

74

3.5.1 Japan

74

3.5.2 Thailand

77

3.5.3 Vietnam

77

3.5.4 Singapore

78

3.5.5 Republic of Korea

78

3.5.6 Malaysia

79

3.5.7 Philippines

79

3.5.8 Myanmar

80

3.5.9 China

80

3.5.10 Indonesia

81

3.5.11 Trend of Intra Regional Trade

81

3.5.12 Status of FDI in East and South East Asia

82

3.6 Environmental Profile: An Overview

84

3.6.1 Vietnam

84

3.6.2 Philippines

85

3.6.3 Cambodia

87

3.6.4 Indonesia

87

3.6.5 China

88

3.6.6 Republic of Korea

90

3.6.7 Malaysia

91

3.6.8 Thailand

93

Mobile Sources

93

Stationary Sources

93

Area Sources

93

3.6.9 Japan

95

3.6.10 Singapore

97

3.6.11 Lao-PDR

98

4 Theoretical Framework, Database and Scenario Development

99

4.1 The Theoretical Framework of the GTAP Model

99

4.2 Aggregation Scheme

102

4.3 Environmental Indicators and Coefficients

103

4.4 Updated Environmental Coefficients Across the Countries

104

4.5 Scenario Development

105

4.6 Modifications of the GTAP Model to 2020

107

4.7 Macroeconomic Variable Estimates and Underlying Assumptions

107

5 Economic Impact of Economic Integration

110

5.1 Introduction

110

5.2 Output Growth

110

5.3 Export and Import Performance

113

5.4 Sectoral Analysis of Output

121

5.5 Sectoral Analysis of Export and Import

122

5.5.1 Sectoral Export Analysis

130

5.5.2 Sectoral Import Analysis

132

5.6 Intra-Industry Trade

135

5.7 Welfare Implication

137

5.8 Effects on Factor Returns

139

5.9 Poverty Implications

142

6 Environmental Impact of Economic Integration

145

6.1 Introduction

145

6.2 Environmental Impact in BAU and Trade Scenarios

145

6.2.1 Air Pollution

146

6.2.2 Water Pollution

150

6.2.2.1 BOD

150

6.2.2.2 COD

151

6.2.2.3 Suspended Solid (SS)

151

6.2.3 Industrial Waste

152

6.3 Sectoral Analysis in BAU and Trade Scenarios

154

6.3.1 BAU Scenario

154

6.3.2 Trade Liberalization Scenarios

162

6.4 Decomposition Analysis

167

6.4.1 Methodology of Decomposition Analysis

167

Activity Effect

169

Composition Effect

169

Technology Effect

169

6.4.2 GHG Indicators at BAU 2020

170

6.4.3 GHG Indicators in Trade Liberalisation Scenarios

172

6.4.4 Decomposition Effect on BOD in BAU and Trade Scenarios

172

7 Strategies for Green Trade

177

7.1 Introduction

177

7.2 Multiple Sector Tax

178

7.2.1 Assessment of Moderate Multiple Sector Tax

179

7.2.2 Assessment of Drastic Multiple Sector Tax

180

7.3 Tax on Electricity

181

7.4 Tax on Coal and Oil

182

7.5 Policy Option for Industrial Waste

184

8 Summary and Conclusion

186

Endnotes

192

References

196

Annex

207

Index

214