The impact of various trade arrangements on Malaysia's bilateral trade costs

The benefits of trade agreements on trade activities are notably acknowledged but the impact on bilateral trade costs remains obscure and have to be further examined. First, this study will construct the micro measure of bilateral trade cost, and then the constructed trade costs will be utilized to...

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Hoofdauteurs: Tan, Jiunn Woei, Lee, Chin, Mohamed, Azali, Ismail, Normaz Wana
Formaat: Artikel
Taal:English
Gepubliceerd in: Penerbit Universiti Kebangsaan Malaysia 2018
Online toegang:http://psasir.upm.edu.my/id/eprint/16043/1/The%20impact%20of%20various%20trade%20arrangements%20on%20Malaysia%27s%20bilateral%20trade%20costs.pdf
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author Tan, Jiunn Woei
Lee, Chin
Mohamed, Azali
Ismail, Normaz Wana
author_facet Tan, Jiunn Woei
Lee, Chin
Mohamed, Azali
Ismail, Normaz Wana
author_sort Tan, Jiunn Woei
collection UPM
description The benefits of trade agreements on trade activities are notably acknowledged but the impact on bilateral trade costs remains obscure and have to be further examined. First, this study will construct the micro measure of bilateral trade cost, and then the constructed trade costs will be utilized to estimate the impact of trade arrangements on trade costs for Malaysia and her trading partners for the year 2002-2012. The results show that all four types of trade arrangements, namely the Multilateral Trade Arrangement (MTA), Regional Trade Arrangement (RTA), Bilateral Free trade Arrangement (BFTA) and bilateral trade Arrangement (BTA) have lowered trade costs. In addition, the different types of trade arrangements result in a variation of trade costs, where regional trade arrangements are expected to reduce bilateral trade costs the most. However empirical result shows otherwise where BFTA gave the highest reduction in trade costs for Malaysia. As to date, the number of BFTA that has been signed is far behind BTA. It is recommended that Malaysia realign its focus towards BFTA with the hope that Malaysia and her trading partners will experience a greater reduction of trade costs in the coming years.
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spelling upm.eprints-160432019-11-12T06:36:37Z http://psasir.upm.edu.my/id/eprint/16043/ The impact of various trade arrangements on Malaysia's bilateral trade costs Tan, Jiunn Woei Lee, Chin Mohamed, Azali Ismail, Normaz Wana The benefits of trade agreements on trade activities are notably acknowledged but the impact on bilateral trade costs remains obscure and have to be further examined. First, this study will construct the micro measure of bilateral trade cost, and then the constructed trade costs will be utilized to estimate the impact of trade arrangements on trade costs for Malaysia and her trading partners for the year 2002-2012. The results show that all four types of trade arrangements, namely the Multilateral Trade Arrangement (MTA), Regional Trade Arrangement (RTA), Bilateral Free trade Arrangement (BFTA) and bilateral trade Arrangement (BTA) have lowered trade costs. In addition, the different types of trade arrangements result in a variation of trade costs, where regional trade arrangements are expected to reduce bilateral trade costs the most. However empirical result shows otherwise where BFTA gave the highest reduction in trade costs for Malaysia. As to date, the number of BFTA that has been signed is far behind BTA. It is recommended that Malaysia realign its focus towards BFTA with the hope that Malaysia and her trading partners will experience a greater reduction of trade costs in the coming years. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/16043/1/The%20impact%20of%20various%20trade%20arrangements%20on%20Malaysia%27s%20bilateral%20trade%20costs.pdf Tan, Jiunn Woei and Lee, Chin and Mohamed, Azali and Ismail, Normaz Wana (2018) The impact of various trade arrangements on Malaysia's bilateral trade costs. Jurnal Ekonomi Malaysia, 52 (2). pp. 69-79. ISSN 0126-1962 http://www.ukm.my/fep/jem/content/2018-2.html 10.17576/JEM-2018-5202-6
spellingShingle Tan, Jiunn Woei
Lee, Chin
Mohamed, Azali
Ismail, Normaz Wana
The impact of various trade arrangements on Malaysia's bilateral trade costs
title The impact of various trade arrangements on Malaysia's bilateral trade costs
title_full The impact of various trade arrangements on Malaysia's bilateral trade costs
title_fullStr The impact of various trade arrangements on Malaysia's bilateral trade costs
title_full_unstemmed The impact of various trade arrangements on Malaysia's bilateral trade costs
title_short The impact of various trade arrangements on Malaysia's bilateral trade costs
title_sort impact of various trade arrangements on malaysia s bilateral trade costs
url http://psasir.upm.edu.my/id/eprint/16043/1/The%20impact%20of%20various%20trade%20arrangements%20on%20Malaysia%27s%20bilateral%20trade%20costs.pdf
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