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Prospects for ASEAN–China Free Trade Area: A Qualitative and Quantitative Analysis

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  • Donghyun Park
  • Innwon Park
  • Gemma Esther B. Estrada

Abstract

The current global financial and economic crisis is giving new life to initiatives that promote closer economic integration among East Asian countries. A significant example is the ASEAN–China Free Trade Area (ACFTA), which is set to come into effect around 2010. ACFTA aims to boost trade between two economies that are partners as well as competitors: ASEAN and China. In the present paper, we use insights from customs union theory in a qualitative analysis considering whether ACFTA would benefit both sides. We also apply a computable general equilibrium model to perform a quantitative analysis of the same issue. Both our qualitative and quantitative analyses provide grounds for guarded optimism regarding ACFTA's prospects as a vehicle for strengthening the economic partnership between ASEAN and China.

Suggested Citation

  • Donghyun Park & Innwon Park & Gemma Esther B. Estrada, 2009. "Prospects for ASEAN–China Free Trade Area: A Qualitative and Quantitative Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(4), pages 104-120, July.
    • Handle: RePEc:bla:chinae:v:17:y:2009:i:4:p:104-120
    DOI: 10.1111/j.1749-124X.2009.01161.x
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    References listed on IDEAS

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    1. Peter J. Lloyd & Donald Maclaren, 2004. "Gains and Losses from Regional Trading Agreements: A Survey," The Economic Record, The Economic Society of Australia, vol. 80(251), pages 445-467, December.
    2. Innwon Park, 2006. "East Asian Regional Trade Agreements: Do They Promote Global Free Trade?," Pacific Economic Review, Wiley Blackwell, vol. 11(4), pages 547-568, December.
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    7. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367.
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    Cited by:

    1. Kim , Sangkyom & Park , Innwon & Park , Soonchan, 2013. "A Free Trade Area of Asia Pacific (FTAAP): Is It Desirable?," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 17(1), pages 3-25, March.
    2. Jeong-Soo OH, 2014. "Does ASEAN-Korea FTA Reduce Poverty in Laos? The Roles of FDI and Trade Facilitation," Journal of Social and Development Sciences, AMH International, vol. 5(2), pages 50-57.
    3. Andini Nurwulandari & I Made Adnyana & Hasanudin, 2019. "Did Inter-Regional Trade Agreements Bring Mutual Benefits? An Empirical Scheme of Indonesian Commodity Exports in Asean-China Free Trade Area," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(6), pages 241-249, October.
    4. Kun‐Ming Chen & Meng‐Chia Tsai & Chia‐Ching Lin & Chaw‐hsia Tu, 2009. "Impact of Cross‐Strait Trade Liberalization: A Computable General Equilibrium Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(6), pages 106-122, November.
    5. Jappe Eckhardt & Hongyu Wang, 2021. "China's new generation trade agreements: Importing rules to lock in domestic reform?," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 581-597, July.
    6. Kilinc, Zubeyir & Mavuş, Merve & Oduncu, Arif, 2015. "Economic Impacts of Korea-Turkey FTA," MPRA Paper 63277, University Library of Munich, Germany.
    7. Dieter, Heribert, 2012. "The drawbacks of preferential trade agreements in Asia," Economics Discussion Papers 2012-68, Kiel Institute for the World Economy (IfW Kiel).
    8. Mirajul Haq & Javeria Saeed & Muhammad Akram, 2021. "Exploring the Advantages and Disadvantages of the China–Pakistan Free Trade Agreement," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(3), pages 83-103, May.

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