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

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

Abstract

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.

Suggested Citation

  • Donghyun Park & Innwon Park & Gemma Esther B. Estrada, 2009. "Prospects for ASEAN-China Free Trade Area: A Qualitative and Quantitative Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(4), pages 104-120.
  • Handle: RePEc:bla:chinae:v:17:y:2009:i:4:p:104-120
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    Cited by:

    1. Park, Innwon & Park, Soonchan & Kim, Sangkyom, 2010. "A Free Trade Area of the Asia Pacific (FTAAP): Is It Desirable?," MPRA Paper 26680, University Library of Munich, Germany.
    2. Kilinc, Zubeyir & MavuĊŸ, Merve & Oduncu, Arif, 2015. "Economic Impacts of Korea-Turkey FTA," MPRA Paper 63277, University Library of Munich, Germany.
    3. Dieter, Heribert, 2012. "The drawbacks of preferential trade agreements in Asia," Economics Discussion Papers 2012-68, Kiel Institute for the World Economy (IfW).

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