IDEAS home Printed from https://ideas.repec.org/p/brd/wpaper/13.html
   My bibliography  Save this paper

The Economics of the ASEAN Economic Community

Author

Listed:
  • Peter A. Petri

    (International Business School, Brandeis University)

  • Michael G. Plummer

    (Johns Hopkins University)

  • Fan Zhai

    (China Investment Corporation)

Abstract

The ASEAN Economic Community (AEC) is the largest integration effort attempted in the developing world; if realized, it will create a single market with the free movement of goods, services, foreign direct investment and skilled labor, and freer movement of capital encompassing nearly 600 million people. The study finds that the AEC could yield benefits similar to those of the European Union, amounting to 5.3% of the region’s GDP and more than twice that if, as expected, the AEC leads to free trade agreements with key external partners. Every ASEAN member will share in these benefits. There will be mild trade and investment diversion effects, but the world as a whole will benefit from the AEC. Nevertheless, the AEC poses political challenges: the study finds that the project will imply significant structural adjustment in several ASEAN economies.

Suggested Citation

  • Peter A. Petri & Michael G. Plummer & Fan Zhai, 2010. "The Economics of the ASEAN Economic Community," Working Papers 13, Brandeis University, Department of Economics and International Business School.
    • Handle: RePEc:brd:wpaper:13
    as

    Download full text from publisher

    File URL: http://www.brandeis.edu/economics/RePEc/brd/doc/Brandeis_WP13.pdf
    File Function: First version, 2010
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
    2. Mr. Tubagus Feridhanusetyawan, 2005. "Preferential Trade Agreements in the Asia-Pacific Region," IMF Working Papers 2005/149, International Monetary Fund.
    3. Shepherd, Ben & Wilson, John S., 2009. "Trade facilitation in ASEAN member countries: Measuring progress and assessing priorities," Journal of Asian Economics, Elsevier, vol. 20(4), pages 367-383, September.
    4. Azmat Gani & Michael D. Clemes, 2010. "Services and economic growth in Pacific Island countries," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 9(2), pages 113-130, July.
    5. Bijit Bora & Aki Kuwahara & Sam Laird, 2002. "Quantification Of Non-Tariff Measures," UNCTAD Blue Series Papers 18, United Nations Conference on Trade and Development.
    6. Zhai, Fan, 2008. "Armington Meets Melitz: Introducing Firm Heterogeneity in a Global CGE Model of Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 575-604.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Suppanunta Romprasert, 2013. "Asian Economic Community with Selected Macroeconomic Variables for Exports Sustainability," International Journal of Economics and Financial Issues, Econjournals, vol. 3(3), pages 602-605.
    2. Arita, Shawn & Tanaka, Kiyoyasu, 2013. "FDI and investment barriers in developing economies," IDE Discussion Papers 431, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. repec:ilo:ilowps:487274 is not listed on IDEAS
    4. Pariwat Kanithasen & Vacharakoon Jivakanont & Charnon Boonnuch, 2011. "AEC 2015: Ambitions, Expectations and Challenges ASEAN's Path towards Greater Economic and Financial Integration," Working Papers 2011-03, Monetary Policy Group, Bank of Thailand.
    5. Nyo, Myat Khet., 2015. "ASEAN Community 2015 managing integration for better jobs and shared prosperity in Myanmar," ILO Working Papers 994872743402676, International Labour Organization.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Douglas H. Brooks & Susan F. Stone (ed.), 2010. "Trade Facilitation and Regional Cooperation in Asia," Books, Edward Elgar Publishing, number 13851, March.
    2. 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.
    3. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    4. Patricia Sourdin & Richard Pomfret, 2012. "Trade Facilitation," Books, Edward Elgar Publishing, number 14596, March.
    5. Plummer, Michael G. & Petri, Peter A. & Zhai, Fan,, 2014. "Assessing the impact of ASEAN economic integration on labour markets," ILO Working Papers 994863513402676, International Labour Organization.
    6. Jafari, Yaghoob & Britz, Wolfgang, 2018. "Modelling heterogeneous firms and non-tariff measures in free trade agreements using Computable General Equilibrium," Economic Modelling, Elsevier, vol. 73(C), pages 279-294.
    7. repec:ilo:ilowps:486351 is not listed on IDEAS
    8. Fugazza, Marco & Maur, Jean-Christophe, 2008. "Non-tariff barriers in CGE models: How useful for policy?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 475-490.
    9. Susan Stone & Anna Strutt, 2010. "Transport Infrastructure and Trade Facilitation in the Greater Mekong Subregion," Chapters, in: Douglas H. Brooks & Susan F. Stone (ed.), Trade Facilitation and Regional Cooperation in Asia, chapter 5, Edward Elgar Publishing.
    10. Vinokurov, Evgeny & Demidenko, Mikhail & Pelipas, Igor & Tochitskaya, Irina & Shymanovich, Gleb & Lipin, Andrey & Movchan, Veronika, 2015. "Estimating the Economic Effects of Reducing Non-Tariff Barriers in the EEU," MPRA Paper 68058, University Library of Munich, Germany.
    11. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 815-876, Elsevier.
    12. Frank van Tongeren & Robert Koopman & Stephen Karingi & John Reilly & Joseph Francois, 2021. "Back to the Future: A 25-Year Retrospective on GTAP and the Shaping of a New Agenda," World Scientific Book Chapters, in: Peter Dixon & Joseph Francois & Dominique van der Mensbrugghe (ed.), POLICY ANALYSIS AND MODELING OF THE GLOBAL ECONOMY A Festschrift Celebrating Thomas Hertel, chapter 3, pages 41-93, World Scientific Publishing Co. Pte. Ltd..
    13. Richard Pomfret & Uwe Kaufmann & Christopher Findlay, 2010. "Are Preferential Tariffs Utilized? Evidence from Australian Imports, 2000-9," School of Economics and Public Policy Working Papers 2010-13, University of Adelaide, School of Economics and Public Policy.
    14. Ben Shepherd, 2010. "Trade costs and facilitation in APEC and ASEAN: delivering the goods?," STUDIES IN TRADE AND INVESTMENT, in: Mia Mikic (ed.), Rising Non-Tariff Protectionism and Crisis Recovery, chapter 5, pages 93-110, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    15. Itakura, Ken & Oyamada, Kazuhiko, 2014. "Examining Trade Response of Armington-Krugman-Melitz Encompassing Module in a CGE Model," Conference papers 332513, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Díaz-Bonilla, Carolina, 2007. "Poverty and Income Distribution Under Different Factor Market Assumptions: A Macro-Micro Model," Conference papers 331625, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Gouranga Gopal Das & Soamiely Andriamananjara, 2006. "Hub-and-Spokes Free Trade Agreements in the Presence of Technology Spillovers: An Application to the Western Hemisphere," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(1), pages 33-66, April.
    18. Peter Walkenhorst & Tadashi Yasui, 2004. "Quantitative Assessment of the Benefits of Trade Facilitation," International Trade 0401008, University Library of Munich, Germany.
    19. United Nations ESCAP, 2011. "Trade Facilitation in Asia and the Pacific: An Analysis of Import and Export Processes, Studies in Trade and Investment 71," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2615, April.
    20. Hiro Lee & Dominique van der Mensbrugghe, 2007. "Regional Integration, Sectoral Adjustments and Natural Groupings in East Asia," OSIPP Discussion Paper 07E008, Osaka School of International Public Policy, Osaka University.
    21. Yann Duval & Chorthip Utoktham, 2009. "Behind the Border Trade Facilitation in Asia-Pacific: Cost of Trade, Credit Information, Contract Enforcement and Regulatory Coherence," Working Papers 6709, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..

    More about this item

    Keywords

    ASEAN; ASEAN Economic Community; Regional Economic Integration; Free Trade Areas;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:brd:wpaper:13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrea Luna (email available below). General contact details of provider: https://edirc.repec.org/data/gsbraus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.