The Impact of RCEP on Trade and FDI for East and Southeast Asian Economies

Abstract

The Regional Comprehensive Economic Partnership (RCEP), the world's largest free-trade agreement, brings together a diverse group of 15 economies, to mutually benefit from an expansion in regional trade and investment, through reduced trade barriers and tariffs and enhanced regulatory coherence. This partnership will undeniably reshape regional economic dynamics. To better understand the ability of the RCEP to reshape the economic dynamics in the region, it is essential to evaluate its impact on trade and foreign direct investment (FDI). This paper therefore aims at critically evaluating RCEP's effects on trade and FDI in the East and South East Asian regions. Assessing the impact of RCEP on trade and FDI is crucial for policymakers, businesses, and investors, as it provides fundamental insights into how the agreement might drive economic growth, improve competitiveness, and promote regional and economic integration. Additionally, it will ensure that stakeholders are better equipped to navigate and capitalize on the opportunities associated with the agreement, while mitigating any potential downsides and overcoming inevitable challenges.