Quantifying the Benefits of Trade Facilitation in ASEAN

Abstract

This paper assesses the performance and progress of the ASEAN economies in trade facilitation, and the effect of improved trade facilitation on the regionfs manufacturing trade with a focus on port efficiency, customs environment, regulatory environment and service sector infrastructure. Under a scenario of raising the below-average countries halfway to the global average, ASEANfs trade is estimated to increase by $99 billion, three-quarters of which comes from the regionfs own improvements. Also, regulatory reforms, for example, enhancing transparency of trade-related regulations and ensuring law-abiding operations of the regulatory authorities, are found to be most effective.regional integration, trade facilitation, gravity model