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The ASEAN Economic Integration Principles: Open, Convergence, Inclusive, and Green

Author

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  • Kiki Verico

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

Abstract

ASEAN is in the process of structural economic and digital transformation. ASEAN needs to adopt related principles to support it. This paper found that structural economic transformation requires the open economy as the necessary principle and economic convergence as the sufficient condition. The open regionalism principle is needed because ASEAN needs Foreign Direct Investment (FDI) from member and non-member states. Furthermore, open regionalism must decrease the economic gap within member states. Therefore, ASEAN needs a sufficient condition of economic convergence within member states. This paper took the implementation of Bali Concord III on FDI inflows as a proxy for open and the GDP per capita gap to the highest member state’s GDP per capita within member states as a proxy for economic convergence. This paper confirmed that economic convergence comes after the open principle. As for the digital economic transformation, this paper showed ASEAN needs the inclusive principle. Lastly, it described ASEAN’s commitment to the green economy. This paper adopted the quantitative method in assessing open and convergence and the qualitative approach in analysing inclusive and green principles.

Suggested Citation

  • Kiki Verico, 2022. "The ASEAN Economic Integration Principles: Open, Convergence, Inclusive, and Green," LPEM FEBUI Working Papers 202271, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2022.
    • Handle: RePEc:lpe:wpaper:202271
    as

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    File URL: https://www.lpem.org/repec/lpe/papers/WP202271.pdf
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    References listed on IDEAS

    as
    1. Richard E. Baldwin, 2008. "Managing The Noodle Bowl: The Fragility Of East Asian Regionalism," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 449-478.
    2. Kiki Verico, 2021. "Mega-Regionalism in Southeast Asia - Single- and Dual-Track Options for ASEAN Member States," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 3(Early Vie), pages 1-5.
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    More about this item

    Keywords

    international economy — open economy — economic integration — digital economy — sustainable economy — ASEAN;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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