Abstract:
Integration into global markets serves as a powerful catalyst for economic growth in developing economies, offering the potential to create high paying jobs and foster development. This paper uses the structural gravity model to quantify potential merchandise exports for Asian economies, identify destinations with significant untapped potential, and assess how factors such as cutting the time required to export can improve export performance. Our preliminary findings reveal that Asian economies, on average, have sustained missing exports equivalent to 6% of gross domestic product. While Asian economies perform relatively well internationally, there remains room for improvement to match top global standards.