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Asian Economic Integration ASEAN+3+1 or ASEAN+1s?

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  • Amita Batra

    (Indian Council for Research on International Economic Relations)

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    Abstract

    In this paper an attempt is made to evaluate the most efficient approach to regional economic integration in Asia. For the purpose, Asia is defined as inclusive of ASEAN, the plus three economies of China, Japan, Korea and India that is the ASEAN plus four. Given that ASEAN is an existing regional bloc in Asia, alternative approaches to the alignment of the plus four economies with ASEAN for the formation of the ASEAN+4 trade bloc have been evaluated to determine if there are efficiency costs by way of distortion in the patterns of trade away from those expected on the basis of comparative advantage. The findings of our analysis underscore the efficiency of a prior alignment with ASEAN for all the plus four economies.

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    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22143.

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    Date of creation: Jan 2006
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    Handle: RePEc:eab:tradew:22143

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    Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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    Related research

    Keywords: Regional Economic Integration; Asia; efficiency cost; Comparative Advantage; first mover advantage; trade diversion;

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    1. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 127(2), pages 265-280, June.
    2. Maurice Schiff & L. Alan Winters, 2003. "Regional Integration and Development," World Bank Publications, The World Bank, The World Bank, number 15172, February.
    3. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, Elsevier, vol. 47(1), pages 61-95, June.
    4. Robert Scollay & John P. Gilbert, 2001. "New Regional Trading Arrangements in the Asia Pacific?," Peterson Institute Press: Policy Analyses in International Economics, Peterson Institute for International Economics, Peterson Institute for International Economics, number pa63, November.
    5. Ng, Francis & Yeats, Alexander, 2003. "Major trade trends in East Asia : what are their implications for regional cooperation and growth," Policy Research Working Paper Series, The World Bank 3084, The World Bank.
    6. Drysdale, Peter & Garnaut, Ross, 1982. "Trade Intensities and the Analysis of Bilateral Trade Flows in a Many-Country World : A Survey," Hitotsubashi Journal of Economics, Hitotsubashi University, Hitotsubashi University, vol. 22(2), pages 62-84, February.
    7. Peter A. Petri, 1993. "The East Asian Trading Bloc: An Analytical History," NBER Chapters, National Bureau of Economic Research, Inc, in: Regionalism and Rivalry: Japan and the United States in Pacific Asia, pages 21-52 National Bureau of Economic Research, Inc.
    8. Jong-Wha Lee & Innwon Park & Kwanho Shin, 2005. "Proliferating Regional Trade Arrangements: Why and Whither?," International Trade, EconWPA 0501010, EconWPA.
    9. Hadi Soesastro, 2003. "An ASEAN Economic Community and ASEAN+3: How Do They Fit Together?," Asia Pacific Economic Papers, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University 338, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    10. Drysdale, Peter, 1969. "Japan, Australia, New Zealand: The Prospect for Western Pacific Economic Integration," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 45(111), pages 321-42, September.
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    Cited by:
    1. Narayanan, Badri & Hertel, Thomas & Horridge, Mark, 2009. "Disaggregated Data and Trade Policy Analysis: The Value of Linking Partial and General Equilibrium Models," GTAP Working Papers, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University 3162, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.

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