Transforming East Asia: Regional Integration in a Trade War Era

Karen Jackson*, Oleksandr Shepotylo

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This paper evaluates the trade and welfare implications of further East Asian trade integration, through the signing of the China-Japan-Korea FTA, and continued trade tensions between the US and China. Our analysis uses a structural gravity approach to explore the effects of these cooperative and non-cooperative trade policies. Our key findings are: (i) for China, the FTA can compensate for continued trade tensions (ii) in terms of the FTA and for the members involved, reductions in tariffs are expected to lead to larger welfare gains compared to those from lower NTBs (iii) for the members involved, a deeper agreement will be more welfare enhancing. Overall, East Asian integration appears to be a more appealing prospect in light of tensions with the US.

Original languageEnglish
Number of pages16
JournalOpen Economies Review
Early online date10 Nov 2022
Publication statusE-pub ahead of print - 10 Nov 2022

Bibliographical note

© 2022, The Author(s). This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made.


  • China-Japan-Korea Free Trade Agreement
  • China-US trade war
  • Gravity model


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