Economic integration

The paper focuses on regional trade agreements and economic co-operation and develops a new appropriate approach to study their impact on growth and trade. The approach is based on an endogenous trade-growth theory and novelly specified in an economic integration (expenditure) framework which is the conceptual foundation of regional trade agreements. Importantly, it also appropriately takes into account major add- and sub-factors as recommended by Johansen, the computable general equilibrium pioneer, in practical economic planning and policy modelling. Applications of the approach to China, a key member of the Regional Comprehensive Economic Partnership agreement group, are also reported to provide useful insights for suitable evidence-based impact analysis. The analysis has relevance to such trading blocs as BRICS and the 21-member Indian Ocean Rim Association where Iran is a key member. Policy implications from the findings are then briefly discussed.

The Regional Comprehensive Economic Partnership (RCEP) is a ground-breaking free trade agreement that encompasses fifteen Asia-Pacific nations, including significant economies such as China, Japan, South Korea, and Australia. The Regional Comprehensive Economic Partnership (RCEP), which was signed in 2020, is one of the most significant free trade agreements in the world. It is comprised of 15 nations, including the ASEAN countries. The primary objective of the paper is to investigate the RCEP as a geopolitical strategy, examining its formation and significance, as well as elucidate on the issues and challenges associated with its implementation in order to effectively promote global trade and regional stability. This article also examines the strategic benefits that are crucial to RCEP member’s interests and the motivations that underlie their participation. The paper employs a doctrinal legal approach to analyse the strategic significance, implications, and formulation of the RCEP. The results indicate that the RCEP substantially improves regional economic integration, reduces economic dependencies, and decreases susceptibility to external trade conflicts. China’s leadership in RCEP, which establishes it as a central participant in regional trade and counters Western influence, supports the Belt and Road Initiative. The agreement enhances intra-regional trade, reduces Western leverage, and cultivates a collaborative framework that transforms the geopolitical landscape of the Asia-Pacific region.