This report examines in detail the impacts and benefits for households and businesses from APEC members’ implementation of structural economic reforms consistent with the APEC Leaders’ Agenda to Implement Structural Reform (LAISR) priority areas.
The report includes 14 case studies of structural reform undertaken in the APEC region. All case studies were written by informed, on-the-spot authors resident in the economies involved. Some of the authors occupied senior roles in the reforms themselves. The report also includes econometric analysis of structural reforms and economic modelling.
The report also examines the potential for further benefits if structural reform in the APEC region is continued. It found that USD175 billion a year in additional real income (in 2004 dollars) could be generated from further reforms in the APEC region. APEC-wide, the projected gains from these structural reforms are almost twice as big as the gains from further liberalisation of merchandise trade. Yet the sectors where the structural reforms occur are less than a quarter of the size of those engaged in merchandise trade. When structural reforms lead to lower real production costs, even by half as much as the report estimates, they create a return to reform effort that is much greater than that from trade reforms.
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