Widening and Deepening Economic Integration Impact on Bilateral Trade in the Eurozone and ASEAN
AbstractThe main aim of this study is to comparatively investigate the impact of different level of economic integration on bilateral trade between the Eurozone and ASEAN. Applying augmented gravity equation, the results showed that deepening impact on bilateral trade was positive in all Eurozone members but insignificant for original member. In ASEAN, deepening impact which is creating AFTA generates positive result only between ASEAN-6, but not when CLMV joined the membership. The policy related with Maastricht criteria variables has small influence on reciprocal trade in both the Eurozone and ASEAN. Horizontal integration was improving in both the Eurozone and ASEAN for positive result of size and similarity coefficient. Intra-trade industry was a phenomenon in all Eurozone, but it was insignificant if only between original members in both the Eurozone and ASEAN due to relatively similar level of development in original members. For ASEAN, different factor endowment was determinant for higher bilateral trade when CLMV countries were included in 1990-2009.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Hiroshima University, Graduate School for International Development and Cooperation (IDEC) in its series IDEC DP2 Series with number 3-3.
Length: 28 pages
Date of creation: May 2013
Date of revision:
Regional Integration; International Trade; Hecksher-Ohlin; Maastricht Criteria; and Gravity Model;
Find related papers by JEL classification:
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert J. R. Elliott & Kengo Ikemoto, 2004.
"AFTA and the Asian Crisis: Help or Hindrance to ASEAN Intra-Regional Trade?,"
Asian Economic Journal,
East Asian Economic Association, vol. 18(1), pages 1-23, 03.
- R J R Elliott & K Ikemoto, 2003. "AFTA and the Asian Crisis: Help or Hindrance to ASEAN Intra-Regional Trade?," The School of Economics Discussion Paper Series 0311, Economics, The University of Manchester.
- Zsolt Darvas, 2010.
"The Case for Reforming Euro Area Entry Criteria,"
1003, Department of Mathematical Economics and Economic Analysis, Corvinus University of Budapest.
- repec:spo:wpecon:info:hdl:2441/9857 is not listed on IDEAS
- ZaenalMutaqin & Masaru Ichihashi, 2012. "Assessing Determinants of Macroeconomic Policy on Real Convergence and Growth: A Comparative Study of the Eurozone and ASEAN," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(2), pages 301-324, June.
- Angresano, James, 2004. "European Union integration lessons for ASEAN + 3: the importance of contextual specificity," Journal of Asian Economics, Elsevier, vol. 14(6), pages 909-926, January.
- Belke, Ansgar & Spies, Julia, 2008.
"Enlarging the EMU to the East: What Effects on Trade?,"
IZA Discussion Papers
3647, Institute for the Study of Labor (IZA).
- Ansgar Belke & Julia Spies, 2008. "Enlarging the EMU to the east: what effects on trade?," Empirica, Springer, vol. 35(4), pages 369-389, September.
- Ansgar Belke & Julia Spies, 2007. "Enlarging the EMU to the east: What effects on trade?," Ruhr Economic Papers 0021, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Stefano Schiavo, 2008.
"Financial Integration, GDP Correlation and the Endogeneity of Optimum Currency Areas,"
London School of Economics and Political Science, vol. 75(297), pages 168-189, 02.
- Stefano Schiavo, 2005. "Financial integration, GDP correlation and the endogeneity of optimum currency areas," Working Papers 25, University of Verona, Department of Economics.
- Stefano Schiavo, 2008. "Financial Integration, GDP Correlation and the Endogeneity of Optimum Currency Areas," Sciences Po publications info:hdl:2441/9857, Sciences Po.
- Sergio Nardis & Claudio Vicarelli, 2003. "Currency unions and trade: The special case of EMU," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 139(4), pages 625-649, December.
- James R. Markusen & Anthony J. Venables, 1996.
"The Theory of Endowment, Intra-Industry, and Multinational Trade,"
NBER Working Papers
5529, National Bureau of Economic Research, Inc.
- Markusen, James R. & Venables, Anthony J., 2000. "The theory of endowment, intra-industry and multi-national trade," Journal of International Economics, Elsevier, vol. 52(2), pages 209-234, December.
- Markusen, James R. & Venables, Anthony J., 1996. "The Theory of Endowment, Intra-Industry and Multinational Trade," CEPR Discussion Papers 1341, C.E.P.R. Discussion Papers.
- Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
- Thierry Warin & Phanindra V. Wunnava & Hubert P. Janicki, 2009.
"Testing Mundell's Intuition of Endogenous OCA Theory,"
Review of International Economics,
Wiley Blackwell, vol. 17(1), pages 74-86, 02.
- Warin, Thierry & Wunnava, Phanindra V. & Janicki, Hubert, 2008. "Testing Mundell's Intuition of Endogenous OCA Theory," IZA Discussion Papers 3739, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keisuke Kawata).
If references are entirely missing, you can add them using this form.