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Prospects for ASEAN-China Free Trade Area: A Qualitative and Quantitative Analysis

  • Donghyun Park
  • Innwon Park
  • Gemma Esther B. Estrada

The current global financial and economic crisis is giving new life to initiatives that promote closer economic integration among East Asian countries. A significant example is the ASEAN-China Free Trade Area (ACFTA), which is set to come into effect around 2010. ACFTA aims to boost trade between two economies that are partners as well as competitors: ASEAN and China. In the present paper, we use insights from customs union theory in a qualitative analysis considering whether ACFTA would benefit both sides. We also apply a computable general equilibrium model to perform a quantitative analysis of the same issue. Both our qualitative and quantitative analyses provide grounds for guarded optimism regarding ACFTA's prospects as a vehicle for strengthening the economic partnership between ASEAN and China. Copyright (c) 2009 The Authors Journal compilation (c) 2009 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

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Article provided by Institute of World Economics and Politics, Chinese Academy of Social Sciences in its journal China & World Economy.

Volume (Year): 17 (2009)
Issue (Month): 4 ()
Pages: 104-120

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Handle: RePEc:bla:chinae:v:17:y:2009:i:4:p:104-120
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