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Intra-regional Trade Effects of ASEAN Free Trade Area in the Textile and Clothing Industry

Author

Listed:
  • Hamid, Mohammed Faiz Shaul

    (University of Malaya, Malaysia)

  • Aslam, Mohamed Aslam

    (University of Malaya, Malaysia)

Abstract

This study investigates intra-regional trade effects of the ASEAN Free Trade Area in the textile and clothing industry by focusing on trade competitiveness and complementarities. Using a novel method of investigating intra-regional trade through 20 bilateral pairs of ASEAN countries, the study analyzed 1,040 observations at the HS3 level to determine revealed comparative advantage and intra-industry trade. The results for both revealed comparative advantage and intra-industry trade in the context of the textile and clothing industry show that most ASEAN countries compete predominantly in trade of unprocessed products or raw materials. Consumer or finished products do not exhibit a high degree of competition, which suggests that product diversification has enabled ASEAN countries to actively export to the global market. The results also show trade-creating and trade-diverting effects in a number of products categories, categories, suggesting that this divergence may disrupt ASEAN’s vision of becoming a regional hub for the textile and clothing industry.

Suggested Citation

  • Hamid, Mohammed Faiz Shaul & Aslam, Mohamed Aslam, 2017. "Intra-regional Trade Effects of ASEAN Free Trade Area in the Textile and Clothing Industry," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 32(3), pages 660-688.
    • Handle: RePEc:ris:integr:0723
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    Citations

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    Cited by:

    1. Bernardina Algieri & Antonio Aquino & Marianna Succurro, 2022. "Trade Specialisation and Changing Patterns of Comparative Advantages in Manufactured Goods," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(3), pages 607-667, November.
    2. Danna-Buitrago, Jenny Paola & Stellian, Rémi, 2022. "Which revealed comparative advantage index to choose? Theoretical and empirical considerations," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.

    More about this item

    Keywords

    AFTA; Intra-regional Trade; ASEAN Textile Industry;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F19 - International Economics - - Trade - - - Other

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