Manila, Feb 17, 2006 AEST (ABN Newswire) - Asian Development Bank's (ASX: ATB) Office of Regional Economic Integration (OREI) will study how to facilitate more effective economic cooperation and integration between developing countries in East and South Asia.
Over the past decade, East Asia, excluding Japan, and South Asia were two of the fastest growing subregions in the world. In spite of their rapid growth, however, economic integration between the two subregions has increased only modestly.
The potential for sustaining high rates of growth in the two subregions through enhanced cooperation and integration is large. Both regions stand to gain from the consequent expansion of the market for goods and services, increased economies of scale, greater competition, lower prices, and more foreign direct investment.
"However, research on the implications of economic cooperation between subregions within Asia is relatively scarce. Such research is necessary to inform policymakers about the types and sequence of policies to garner support for, and gain from, regional economic cooperation," says Ganeshan Wignaraja, an ADB Senior Trade Economist.
OREI will develop a model that will estimate the potential effects of trade liberalization under various scenarios. The model will allow them to identify sectors that have the potential to make significant gains from cooperation, and specify policy options at the regional, subregional, and country levels needed to realize those benefits.
Separate studies will also be undertaken on the current degree of integration in merchandise trade and investment, trade in services, and infrastructure and trade facilitation, with corresponding case studies from the perspective of selected developing countries or country groups.
The results of the studies will be presented at a senior policy seminar with high-level officials from East and South Asia.
The studies will be financed by a US$500,000 technical assistance grant and are expected to be completed by June 2007.
Contact
David Kruger
Email: dkruger@adb.org
Tel:+632 632 5204; +63 916 767 3671
Graham Dwyer
Email: gdwyer@adb.org
Tel:+632 632 5253; +632 898 3413
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