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Abstract
In this paper, we introduce global value chains (GVCs) in intermediate transactions to the recursively dynamic computable general equilibrium (CGE) model. Then, we explore how the introduction of GVCs affects impact of trade policy, by making comparisons between the policy effects obtained from the model incorporating the GVCs and those obtained from a conventional model. To compare economic effects of trade policy, we run a set of policy simulations of the Regional Comprehensive Economic Partnership (RCEP) agreement between the ASEAN member countries and Japan, China, Korea, Australia, New Zealand, and Singapore.