Does ASEAN Freer Trade Benefit Malaysia?

Abstract

This paper examines the impact of intra-ASEAN trade liberalization (AFTA) using a multi-country, computable general equilibrium model (GTAP Model) with special focus on Malaysia. The study considers the full elimination of intra-ASEAN import taxes and export subsidies. Results suggest that Malaysia‟s GDP would only increase marginally while the effects on the individual commodity sectors in the country differ substantially.ASEAN Free Trade (AFTA), GTAP, CGE Trade Model, AFTA Impacts on Malaysia, Trade liberalization