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Enhancing Trade Flows in ASEAN Plus Six

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  • Sithanonxay SUVANNAPHAKDY
  • Toshihisa TOYODA
  • Chris CZERKAWSKI

Abstract

Using an unbalanced panel dataset of bilateral trade flows, we study the determinants of bilateral trade of ASEAN 10 countries, Australia, China, India, Japan, New Zealand, and South Korea, from 1989 to 2009. We find that bilateral trade flow is positively related to the overall bilateral country size and similarity in country size and inversely related to the relative factor endowment differences, transportation costs, and import tariffs. Our simulation results show that establishing the free trade area in ASEAN+6 is important for promoting intraregional trade by about 39.3% ($66.6 billion), and that a new economic community of the “6” countries together with ASEAN promotes mutual trade.

Suggested Citation

  • Sithanonxay SUVANNAPHAKDY & Toshihisa TOYODA & Chris CZERKAWSKI, 2011. "Enhancing Trade Flows in ASEAN Plus Six," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
    • Handle: RePEc:eaa:aeinde:v:11:y:2011:i:2_14
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    Cited by:

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    2. Takuya Yamaguchi & Ryuichi Shibasaki & Hiroyuki Samizo & Hisanari Ushirooka, 2021. "Impact on Myanmar’s Logistics Flow of the East–West and Southern Corridor Development of the Greater Mekong Subregion—A Global Logistics Intermodal Network Simulation," Sustainability, MDPI, vol. 13(2), pages 1-22, January.
    3. Suvannaphakdy, Sithanonxay & Tang, Hsiao Chink & DiCaprio, Alisa, 2014. "Assessing the trade impacts of the ASEAN+6 FTA : the case of Lao People’s Democratic Republic," Working Papers on Regional Economic Integration 126, Asian Development Bank.
    4. Sithanonxay Suvannaphakdy & Hsiao Chink Tang & Alisa DiCaprio, 2016. "Assessing the trade impacts of the ASEAN + 6 FTA for Lao PDR," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 30(2), pages 72-89, November.

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    More about this item

    Keywords

    East Asia; trade flows; gravity model;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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