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The Relationship between Trade Integration and Economic Growth: Case of ASEAN-5 Countries

Author

Listed:
  • Arunnan Balasubramaniam

    (Department of Economics, Universiti Tunku Abdul Rahman, (Perak Campus), Kampar 31900, Malaysia)

  • Shazali Abu Mansor

    (UNIMAS Business School, Universiti Malaysia Sarawak, 94300 Kota Samarahan Sarawak, Malaysia)

  • Chin‐Hong Puah

    (UNIMAS Business School, Universiti Malaysia Sarawak, 94300 Kota Samarahan Sarawak, Malaysia)

Abstract

This paper studies how regional trade among ASEAN-5 countries (Indonesia, Malaysia, the Philippines, Singapore, and Thailand) help in expanding the member countries’ output. This paper applies ARDL bound testing approach with instrumental variables to explore the relationship and finds that estimates is in range of 0.27–0.55 %. The paper concludes that trade integration should be promoted in order to stimulate economic growth within each country.

Suggested Citation

  • Arunnan Balasubramaniam & Shazali Abu Mansor & Chin‐Hong Puah, 2016. "The Relationship between Trade Integration and Economic Growth: Case of ASEAN-5 Countries," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 16(4), pages 745-768, December.
  • Handle: RePEc:wsi:gejxxx:v:16:y:2016:i:04:n:gej-2016-0024
    DOI: 10.1515/GEJ-2016-0024
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