ABSTRACT

This chapter illustrates the impact of various trade and transport facilitation measures (TTFMs) on Association of Southeast Asian Nations (ASEAN) member countries at the subnational level by utilizing the Institute of Developing Economies (IDE) - Geographical Simulation Model (GSM). It analyses the TTFMs under Master plan on ASEAN connectivity (MPAC) by the IDE-GSM. Analyses at the subnational level are essential for effective policy making for regional development. It is also useful to see the impacts of TTFMs on regional income inequality. The IDE-GSM was based on this Core-Periphery model, with two main objectives: to simulate the dynamics of the locations of the populations and industries in East Asia over the long term, and to analyze the impact of specific TTFMs on regional economies at the subnational level. The authors take the differences of GDPs/GRPs between the baseline scenario and an alternative scenario to calculate the economic impacts of each TTFM.