Towards Formation of Close Economic Cooperation among Asian Countries* Nagesh Kumar** S K Mohanty Sanjib Pohit Saikat Sinha Roy Annual Conference of GTAP The 6th Annual Conference on Global Economic Analysis June 12-14, 2003 Scheveningen, The Hague, The Netherlands * The preliminary results of the paper was presented in an international conference on “Building a New Asia: Towards an Asian Economic Community, March 10-11, New Delhi. The authors have special word of thanks for Mukul Asher, Prabir Sengupta and Mohmed Ariff for their comments on an earlier version of the paper. The authors have benefited from the comments received from the participants at the conference. The findings of the paper and the views expressed here do not represent the organisations to which they belong. The authors are responsible for errors, if any. ** Nagesh Kumar, Director General of Research and Information System for the Non-Aligned and Other Developing Countries (RIS), New Delhi. (
[email protected]), S.K.Mohanty, Faculty Member, RIS, New Delhi, (
[email protected]), Sanjib Pohit, Senior Economist, NCAER, New Delhi (
[email protected]) and Saikat Sinha Roy, Asian Development Bank, India Resident Mission, New Delhi (
[email protected]). GTAP Page 1 Towards Formation of Close Economic Cooperation among Asian Countries I. Introduction The paper attempts to estimate and analyse the extent of welfare gains consequent upon close economic cooperation among Asian countries, where close economic cooperation in Asia would connote, in addition to trade liberalisation, freer cross border movements of investment, technology and skilled manpower. The emergence of Asia as a regional grouping assumes importance in the context of large regional groupings such as the EU and the NAFTA gaining substantially from globalisation.