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Does ASEAN Freer Trade Benefit Malaysia?



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.

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