Is a regional trading bloc forming in southeast Asia? New evidence for ASEAN countries

Cieślik, Andrzej; Song, Tao

doi:10.2478/v10288-012-0028-z

Abstract

This article studies the impact of ASEA N on the bilateral exports of its 10 member countries. It reports the results of applying the gravity model to a data set covering 50 partner countries from 1967 to 2008. The study’s empirical findings show that on average ASEA N regionalism significantly increases bilateral exports. However, the results are country-specific and indicate that ASEA N seems to benefit only large economies with a long history of membership, while smaller more recent members do not show significant expansion of exports.

References

Association of Southeast Asian Nations, ASEAN Free Trade Area (AFTA). Available from: <http://www.usasean.org/ASEAN/afta.php>.
Association of Southeast Asian Nations. Available from: <http://www.aseansec.org>.
Cieślik, A 2009, ‘Bilateral trade volumes, the gravity equation and factor proportions’, Journal of International Trade & Economic Development, vol. 18, no. 1, pp. 37-59. 10.1080/09638190902757400
Cieślik, A & Hagemejer, J 2009, ‘Assessing the impact of the EU-sponsored trade liberalization in the MENA countries’, Journal of Economic Integration vol. 24, no. 2, pp. 344-369. 10.11130/jei.2009.24.2.343
Cieślik, A & Hagemejer, J 2011, ‘Evaluating the effectiveness of preferential trade liberalization in Central and Eastern Europe’, International Trade Journal vol. 25, no. 5, pp. 516-538. 10.1080/08853908.2011.604298
De Benedictis, L, De Santis, R & Vicarelli, C 2005, ‘Hub-and-spoke or else? Free trade agreements in the ‘enlarged’ European Union’, European Journal of Comparative Economics, vol. 2, no. 2, pp. 245-260. 10.2139/ssrn.728409
Elliot, R. & Ikemoto, K 2004, ‘AFTA and the Asian crisis: Help of hindrance to ASEAN intra-regional trade?’, Asian Economic Journal, vol. 18, no. 1, pp. 1-23. 10.1111/j.1467-8381.2004.00179.x
Endoh, M 2000, ‘The transition of postwar Asia-Pacific trade relations’, Journal of Asian Economics, vol. 10, no. 4, pp. 571-589. 10.1016/S1049-0078(00)00033-6
Frankel, J & Wei, SJ 1997, Regional trading blocs in the world economic system, Institute for International Economics, Washington. DC.
Medvedev, D 2010, ‘Preferential trade agreements and their role in world trade’, Review of World Economics, vol. 146, no. 2, pp. 199-222. 10.1007/s10290-010-0054-x
Peridy, N 2005, ‘The trade effects of the Euro-Mediterranean partnership: what are the lessons for ASEAN countries?’, Journal of Asian Economics Elsevier, vol. 16, no.1, pp. 125-139. 10.1016/j.asieco.2004.12.001
Sharma, S.C. & Chua, SY 2000, ‘ASEAN economic integration and intra-regional trade’, Applied Economic Letters, vol. 7, no. 3, pp. 165-169. 10.1080/135048500351726
Siah, KL, Choong, CK, & Yusop, Z 2009, ‘AFTA and the intra-trade patterns among ASEAN 5 economies: Trade enhancing or trade inhibiting?’, International Journal of Economics and Finance, vol. 1, no. 1, pp. 117-126. 10.5539/ijef.v1n1p117
Soloaga, I & Winters, AL 2001, ‘Regionalism in the nineties: What effect on trade?’, North American Journal of Economics and Finance, vol.12, no. 1, pp.1-29. 10.1016/S1062-9408(01)00042-0
STATA, statistical software 1996-2012. Available from: <http://www.stata.com>.
World Trade Organization. Available from: <http://www.wto.org>.

Is a regional trading bloc forming in southeast Asia? New evidence for ASEAN countries

Abstract

Paradigm

My account