Much of the analysis of infrastructure's impact on trade costs focuses on conditions in developed countries. This book makes an invaluable contribution to our understanding by examining the situation in developing Asia, the world's most populous and fastest growing region. This study analyzes and draws policy implications from infrastructure's central role in lowering Asia's trade costs. Infrastructure is shown to be a cost-effective means of lowering trade costs and thereby promoting regional growth and integration. This book combines thematic and country studies, while breaking new ground in.
. . . this is a timely and useful collection of regional studies. Ben Shepherd, Asian Pacific Economic Literature Analysis of infrastructure s role in facilitating international trade and consequently regional economic integration is still rudimentary. This original book fills that knowledge gap by exploring relevant concepts, measurement issues, aspects of the implementation of trade-related infrastructure facilities and their impacts on poverty, trade, investment and macroeconomic balances. Continuing the series of books produced in association with the Asian Development Bank Institute, this study explores the virtuous cycle of infrastructure investment, trade expansion and economic growth in developing Asia. Issues relating infrastructure, both hard and soft, to trade facilitation and trade costs are defined and examined, and the role of infrastructure in regional cooperation to enhance intraregional trade is analysed. Empirical estimates of trade costs in Asia suggest there is significant room for infrastructure to lower those costs further. By approaching the infrastructure trade nexus at the regional level through cooperative activities, this study shows it is possible to increase the range of policy options and risk management opportunities. Infrastructure and Trade in Asia will be of interest to trade and infrastructure policymakers, academics at graduate and above levels involved in economic development and Asian studies as well as those in the development community interested in regional cooperation and integration.
The world economic crisis of 2008 presents clear challenges to prospects for economic growth in developing countries. This is particularly true for emerging economies in East Asia that have relied to a great extent over the past decade on export-led growth. What steps to facilitate trade promise a relatively strong return on investment for East Asia to help sustain trade and growth? The authors examine how port infrastructure affects trade and the role of transport costs in driving exports and imports for the region. They find that port congestion has significantly increased the transport costs to East Asia from both of the United States and Japan. The analysis suggests that cutting port congestion by 10 percent could cut transport costs in East Asia by up to 3 percent. This translates into a 0.3 to 0.5 percent across-the-board tariff cut. In addition, the estimates suggest that the trade cost reduction of investment in port infrastructure in East Asia that translates into higher consumer welfare would far outweigh the cost for physical expansion of the ports in the region.
Infrastructure is essential for development. This report presents a snapshot of the current condition of developing Asia's infrastructure---defined here as transport, power, telecommunications, and water supply and sanitation. It examines how much the region has been investing in infrastructure and what will likely be needed through 2030. Finally, it analyzes the financial and institutional challenges that will shape future infrastructure investment and development.
The world economic crisis of 2008 presents clear challenges to prospects for economic growth in developing countries. This is particularly true for emerging economies in East Asia that have relied to a great extent over the past decade on export-led growth. What steps to facilitate trade promise a relatively strong return on investment for East Asia to help sustain trade and growth? The authors examine how port infrastructure affects trade and the role of transport costs in driving exports and imports for the region. They find that port congestion has significantly increased the transport costs to East Asia from both of the United States and Japan. The analysis suggests that cutting port congestion by 10 percent could cut transport costs in East Asia by up to 3 percent. This translates into a 0.3 to 0.5 percent across-the-board tariff cut. In addition, the estimates suggest that the trade cost reduction of investment in port infrastructure in East Asia that translates into higher consumer welfare would far outweigh the cost for physical expansion of the ports in the region.
We examine how port infrastructure affects trade and role of transport costs in driving exports and imports for East Asia. Existing studies use survey indexes to explain transport costs. These do not link investment in port infrastructure to transport costs. We include in our estimates a variable to represent the congestion of the ports to explain the transport costs. We find that the port congestion has significantly increased the transport costs from East Asia to the United States. Our analysis suggests that increase in port capacity by 10 percent could cut transport cost in East Asia by up to three percent. This translates into a 0.3 to 0.5 percent across-the-board tariff cut.
"What effect does distance have on costs for economies at different locations? Exports and imports of final and intermediate goods bear transport costs that increase with distance. Production and trade depend on factor endowments and factor intensities as well as on distance and the transport intensities of different goods"--Cover.
This study examines major challenges and issues associated with developing regional infrastructure through the fostering of regional cooperation in Asia, and provides a framework for pan-Asian infrastructure cooperation. The study's long-term vision is the creation of a seamless Asia (an integrated region connected by world-class, environmentally friendly infrastructure) in terms of both "hard" (physical) and "soft" (facilitating) infrastructure. The soft part supports the development and operation of the hard component. Findings indicate that the benefits of upgrading and extending Asia's infrastructure networks are substantial, and that all countries in the region would benefit. A logistics network is only as good as its weakest link; each country in a regional supply chain gains from infrastructure improvements made in others. Improving connectivity in the region would bring Asia large welfare gains through increased market access, reduced trade costs, and more efficient energy production and use. According to the study, to achieve this Asia needs to invest approximately $8 trillion in overall national infrastructure between 2010 and 2020. In addition, Asia needs to spend approximately $290 billion on specific regional infrastructure projects in transport and energy that are already in the pipeline
This book is an important contribution to the policy debate on the future of regional integration around the world, and in Asia in particular. The complex linkages between regional integration and regional cooperation, soft and hard integration, trade facilitation and regional infrastructure are all addressed competently in different chapters of this publication, which should be read by all of those concerned with the future of regional integration and cooperation in Asia. Antoni Estevadeordal, Inter-American Development Bank (IDB) As we emerge from the worst global economic setback in two generations, the momentum of Asian economies suggests that this region will redefine the geography of trade and growth even more quickly and decisively than expected. Because Asia offers the largest emerging markets, superior growth rates, and new patterns of trade diversification, this region is becoming the leading edge of the global economy for the next generation. This volume addresses the essential issues related to Asian trade and regionalism with intellectual authority and essential timeliness. Brooks and Stone have assembled leading experts, distilled evidence, and synthesized policy lessons on the salient issues and trends that will drive the world s most dynamic economic region. Their book should be a desk reference for policy-makers and leading private sector players who want to respond effectively to the momentous challenges and opportunities presented by the Asian century. David Roland-Holst, University of California, Berkeley, US This insightful book collects empirical analyses and case studies to clarify issues and draw policy recommendations for facilitating greater regional trade through increased cooperation. Asia s rapid development has been heavily dependent on markets external to the region. However, given the unlikely timely recovery of the United States or Europe there is an urgent need to develop domestic and regional markets. While greater integration has long been a regional goal, its importance has never been more pressing. To facilitate trade and promote growth and regional integration, and to counteract declining markets in other regions, Asian countries have announced large expenditures for developing infrastructure. Thus, a look at how investment in regional infrastructure promotes and supports interregional trade growth has never been timelier. While the focus is on informing policy-making in Asia, the findings also have relevance for other regions. The detailed studies in this book will be of particular interest to academic economists, policy-makers, and the broader development community.
