Analysis of Trade Liberalization of the Blue Economy in Indian Ocean Rim Association

Abstract

Listen

Translate article

AbstractIn recent times, several studies have been done on the blue economy. One aspect that is seldom discussed is the trade facilitation and liberalization that is achieved through its efficient implementation. In this chapter, we attempt to capture just that—the impact of global trade and its subsequent economic consequences in the blue economy. This would help in understanding whether the objectives of enhanced economic growth and employment opportunities can be obtained through trade liberalization. The paper studies this aspect using simulations of computational general equilibrium analysis. The results suggest that imports and overall welfare may increase due to the trade liberalization between IORA and non-IORA countries in the blue economy sectors. The economies act positively by increased access to global markets in order to utilize the abundantly available blue economy resources. Import expansion can be as high as half a percent of initial imports in some countries. Trade impact is much more visible in certain industrial sectors, than others. Therefore, it can be unequivocally stated that for the growth of the blue economy, trade liberalization measures may be undertaken for the promotion of economic growth and welfare of the region. With improved trade facilitation, countries will have an improved logistic performance score.KeywordsComputational general equilibriumEconomic growthTrade liberalizationIORATrade facilitationGlobal tradeCarbon emissionsSocial inclusionBlue growthContingent valuation