Sustainable Production, Non-Tariff Measures, and Trade Performance in RCEP Countries

The role of trade liberalization in promoting regional integration and sustainability: The case of regional comprehensive economic partnership

In globalization’s era, the sustainability of a region is inseparable from the in-depth and close economic and trade cooperation of intra-regional countries to achieve complementary advantages, intra-regional and extra-regional positive economic cycles, and stable and balanced benefits distribution. For Asia-Pacific countries, the lack of deep cooperation in the past has affected their sustainability, but this can be made up for by the RCEP agreement aimed at achieving intra-regional trade liberalization. We adopt the Global Trade Analysis Project (GTAP) simulation analysis method to quantitatively analyze the impact of changes in macroeconomic and international trade indicators of several intra-regional countries after implementing the RCEP tariff reduction and exemption on the RCEP. Simulation results and comparative analysis based on international relations prove that despite the interference of trade benefits conflicts and international political factors, the RCEP can still exist in long term, and effectively promote regional economic integration and sustainability in the Asia-Pacific region. It is also a development opportunity for intra-regional countries and can also be used in the context of globalization providing references for integration and sustainability in other regions.

The Spatial Correlation and Driving Mechanism of Wood-Based Products Trade Network in RCEP Countries

Clarifying the spatial correlation and driving mechanism of wood-based products trade network is conducive to promoting the Regional Comprehensive Economic Partnership (RCEP) to a higher level. Firstly, we explored the characteristics of spatial correlation and evolution tendency of raw material-type wood-based products trade network (TN-WFPM) and product-type wood-based products trade network (TN-WFPP) from the overall characteristics, centrality, and node coreness of the networks according to social network analysis method. Then we analyzed the driving mechanism of the spatial correlation according to the quadratic assignment procedure (QAP). The results show that, compared with TN-WFPM, the density, reciprocity, and agglomeration of the TN-WFPP are relatively stronger. The centrality and evolution characteristics of RCEP countries are different in the networks. The coreness of China and Thailand in the TN-WFPP has always been in the top two, while the coreness of China, Japan, and Korea has increased significantly and China has been the top since 2010 in the TN-WFPM. Factors like cultural distance, forest resource endowment, forest certification area, economic scale, economic distance, and free trade agreements (FTA) have significant impacts on the spatial correlation of wood-based products trade among RCEP countries. Furthermore, the impacts of different factors on the two kinds of networks are heterogeneous.

Economic Transformation and Sustainable Development through Multilateral Free Trade Agreements

For sustainable economic development, a continuous and successful economic transformation is critical, and supporting economic transformation requires a better understanding of the close interaction between technology and skill at the micro- and macro-levels. The technology-skill links should especially be important in today’s globalized world. This paper develops a large-scale global Computable General Equilibrium (CGE) model by incorporating recent theoretical advances in international trade: Heterogeneous workers endogenously sort into different technologies based on their comparative advantage, and aggregate productivity is determined by skill-technology assignment in equilibrium. We then calibrate our model to a real-world data set, and investigate how multilateral free trade agreements affect individual member states, as well as outside countries and regions in the case of the Regional Comprehensive Economic Partnership (RCEP). Overall, the results show considerable real productivity gains and economic transformation effects, due to technology-upgrading mechanisms.