IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2016-02-38.html
   My bibliography  Save this article

Regional Integration of the Association of Southeast Asian Nations Economic Community: An Analysis of Malaysia - Association of Southeast Asian Nations Exports

Author

Listed:
  • Irwan Shah Zainal Abidin

    (School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia, Sintok 06010, Kedah, Malaysia)

  • Muhammad Haseeb

    (School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia, Sintok 06010, Kedah, Malaysia)

  • Rabiul Islam

    (School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia, Sintok 06010, Kedah, Malaysia)

Abstract

Malaysia is a rapid growing economy especially in the Association of Southeast Asian Nations (ASEAN) region. The exports with ASEAN countries plays vital role in economic growth and development of Malaysia. Additionally, current chairmanship of ASEAN makes Malaysia more prominent in the region. Consequently, exploring the determinants of Malaysia - ASEAN-5 countries, namely Singapore, Thailand, Indonesia, Philippine and Vietnam exports performance is a fundamental objective of this study. The panel data of Malaysia and other ASEAN-5 countries for the period 1990- 2013 and renowned international trade model gravity has been applied to explore the determinants. The results of the study explore that distance, population size, economic size and exchange rate are the significant potential determinants of Malaysia ASEAN exports during the period of study. The findings of this study provide lucid and wide range policies for Malaysian government to boost the economic growth and development through exports promotion with ASEAN countries.

Suggested Citation

  • Irwan Shah Zainal Abidin & Muhammad Haseeb & Rabiul Islam, 2016. "Regional Integration of the Association of Southeast Asian Nations Economic Community: An Analysis of Malaysia - Association of Southeast Asian Nations Exports," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 646-652.
    • Handle: RePEc:eco:journ1:2016-02-38
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/download/1769/pdf
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijefi/article/view/1769/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hassan, M. Kabir, 2001. "Is SAARC a viable economic block? evidence from gravity model," Journal of Asian Economics, Elsevier, vol. 12(2), pages 263-290.
    2. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    3. Himarios, Daniel, 1989. "Do Devaluations Improve the Trade Balance? The Evidence Revisited," Economic Inquiry, Western Economic Association International, vol. 27(1), pages 143-168, January.
    4. Chow, Peter C. Y., 1987. "Causality between export growth and industrial development : Empirial evidence from the NICs," Journal of Development Economics, Elsevier, vol. 26(1), pages 55-63, June.
    5. Tang, Chor Foon & Lai, Yew Wah & Ozturk, Ilhan, 2015. "How stable is the export-led growth hypothesis? Evidence from Asia's Four Little Dragons," Economic Modelling, Elsevier, vol. 44(C), pages 229-235.
    6. Clark, Ximena & Dollar, David & Micco, Alejandro, 2004. "Port efficiency, maritime transport costs, and bilateral trade," Journal of Development Economics, Elsevier, vol. 75(2), pages 417-450, December.
    7. Blum, Bernardo S. & Goldfarb, Avi, 2006. "Does the internet defy the law of gravity?," Journal of International Economics, Elsevier, vol. 70(2), pages 384-405, December.
    8. Loungani, Prakash & Mody, Ashoka & Razin, Assaf, 2002. "The Global Disconnect: The Role of Transactional Distance and Scale Economies in Gravity Equations," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 526-543, December.
    9. Christophe Rault & Robert Sova & Ana Maria Sova, 2009. "Modelling international trade flows between CEEC and OECD countries," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1547-1554.
    10. Krueger, Anne O, 1990. "Asian Trade and Growth Lessons," American Economic Review, American Economic Association, vol. 80(2), pages 108-112, May.
    11. Wilson, John F & Takacs, Wendy E, 1979. "Differential Responses to Price and Exchange Rate Influences in the Foreign Trade of Selected Industrial Countries," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 267-279, May.
    12. Acaravci, Ali & Ozturk, Ilhan, 2012. "Foreign Direct Investment, Export and Economic Growth: Empirical Evidence from New EU Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 52-67, June.
    13. Muhammad Shahbaz & Mohammad Mafizur Rahman, 2014. "Exports, financial development and economic growth in Pakistan," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 13(2), pages 155-170, July.
    14. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
    15. Greenaway, David & Milner, Chris, 2002. "Regionalism and Gravity," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 574-585, December.
    16. Rubina Vohra, 2001. "Export and economic growth: Further time series evidence from less-developed countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(3), pages 345-350, August.
    17. Harrigan, James, 1993. "OECD imports and trade barriers in 1983," Journal of International Economics, Elsevier, vol. 35(1-2), pages 91-111, August.
    18. Tarik Yousef & Mr. Hassan Al-Atrash, 2000. "Intra-Arab Trade: Is it too Little?," IMF Working Papers 2000/010, International Monetary Fund.
    19. Mark Vancauteren & Daniel Weiserbs, 2011. "Intra-European Trade of Manufacturing Goods: An Extension of the Gravity Model," International Econometric Review (IER), Econometric Research Association, vol. 3(1), pages 1-24, April.
    20. Marianne Matthee & Wim Naudé, 2008. "The Determinants of Regional Manufactured Exports from a Developing Country," International Regional Science Review, , vol. 31(4), pages 343-358, October.
    21. Ram, Rati, 1987. "Exports and Economic Growth in Developing Countries: Evidence from Time-Series and Cross-Section Data," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 51-72, October.
    22. Balassa, Bela, 1985. "Exports, policy choices, and economic growth in developing countries after the 1973 oil shock," Journal of Development Economics, Elsevier, vol. 18(1), pages 23-35.
    23. Simwaka, Kisu, 2006. "Dynamics of Malawi’s trade flows: a gravity model approach," MPRA Paper 1122, University Library of Munich, Germany.
    24. Lucian Cernat, 2001. "ASSESSING REGIONAL TRADE ARRANGEMENTS: ARE SOUTH–SOUTH RTAs MORE TRADE DIVERTING?," International Trade 0109001, University Library of Munich, Germany.
    25. Sawkut Rojid, 2006. "COMESA trade potential: a gravity approach," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 947-951.
    26. Warner, Dennis & Kreinin, Mordechai E, 1983. "Determinants of International Trade Flows," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 96-104, February.
    27. Tyler, William G., 1981. "Growth and export expansion in developing countries : Some empirical evidence," Journal of Development Economics, Elsevier, vol. 9(1), pages 121-130, August.
    28. Jeffrey Frankel & Andrew Rose, 2002. "An Estimate of the Effect of Common Currencies on Trade and Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 437-466.
    29. Anita Daraisami, 2004. "Export growth slowdown and currency crisis: the Malaysian experience," Applied Economics, Taylor & Francis Journals, vol. 36(17), pages 1947-1957.
    30. Filippini, Carlo & Molini, Vasco, 2003. "The determinants of East Asian trade flows: a gravity equation approach," Journal of Asian Economics, Elsevier, vol. 14(5), pages 695-711, October.
    31. David Greenaway & Chris Milner, 2002. "Regionalism and Gravity," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 574-585, November.
    32. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237, December.
    33. Jaleel Ahmad & Somchai Harnhirun, 1996. "Cointegration and Causality between Exports and Economic Growth: Evidence from the ASEAN Countries," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 413-416, April.
    34. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    35. Prakash Loungani & Ashoka Mody & Assaf Razin, 2002. "The Global Disconnect: The Role of Transactional Distance and Scale Economies in Gravity Equations," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 526-543, November.
    36. Bahmani-Oskooee, Mohsen, 1986. "Determinants of international trade flows : The Case of Developing Countries," Journal of Development Economics, Elsevier, vol. 20(1), pages 107-123.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saba Qasim & Mohammad R.A. Siam & Salniza Bt Md. Sallaeh, 2017. "How corporate social responsibility can effect on the consumers` attitude and behavior?: a conceptual study," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 7(12), pages 298-308, December.
    2. Saba Qasim & Mohammad R.A. Siam & Mohd Nizam bin M Sarkawi, 2017. "The effect of CSR on brand loyalty: the moderating role of corporate reputation and mediates the brand image," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 7(10), pages 251-259, October.
    3. Adel Shakeeb MOHSEN, 2020. "Trade Liberalization and International Trade: A Case Study of China," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 4(1), pages 1-14.
    4. Agus Eko Sujianto & Tulus Suryanto, 2018. "Income differences, trade and Institutions: empirical evidence form low and middle-income countries," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 217-228, April.
    5. Mahmood, Haider & Alkhateeb, Tarek Tawfik Yousef & Maalel, Nabil, 2017. "Egyptian Intra Agriculture Trade with Common Market for Eastern and Southern Africa Trading Partners: A Gravity Model," MPRA Paper 109145, University Library of Munich, Germany.
    6. Rabiul Islam & Ahmad Bashawir Abdul Ghani & Emil Mahyudin & Narmatha Manickam, 2017. "Determinants of Factors that Affecting Inflation in Malaysia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 355-364.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alassane Drabo, 2011. "Agricultural primary commodity export and environmental degradation: what consequences for population's health?," CERDI Working papers halshs-00586034, HAL.
    2. Cardamone, Paola, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(4), pages 421-473.
    3. Zhang, Daowei & Li, Yanshu, 2009. "Forest endowment, logging restrictions, and China's wood products trade," China Economic Review, Elsevier, vol. 20(1), pages 46-53, March.
    4. Shahbaz, Muhammad & Rahman, Mizanur, 2011. "Impact of economic growth and financial development on exports: Cointegration and causality analysis in Pakistan," MPRA Paper 28563, University Library of Munich, Germany.
    5. Shahbaz, Muhammad & Mohammad, Mafizur Rahman, 2014. "The Dynamics of Exports, Financial Development and Economic Growth in Pakistan: New Extensions from Cointegration and Causality Analysis," MPRA Paper 53225, University Library of Munich, Germany, revised 19 Jan 2014.
    6. Abrar ul haq, Muhammd, 2015. "Agricultural Export and Economic Growth: A Case Study of Pakistan," MPRA Paper 67249, University Library of Munich, Germany, revised 2015.
    7. Hatemi-J, Abdulnasser, 2002. "Export performance and economic growth nexus in Japan: a bootstrap approach," Japan and the World Economy, Elsevier, vol. 14(1), pages 25-33, January.
    8. Maria Cipollina & Luca Salvatici, 2010. "Reciprocal Trade Agreements in Gravity Models: A Meta‐Analysis," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 63-80, February.
    9. Alper Aslan & Ebru Topcu, 2018. "The Relationship between Export and Growth: Panel Data Evidence from Turkish Sectors," Economies, MDPI, vol. 6(2), pages 1-15, April.
    10. Kuang-Hann Chou & Chien-Hsun Chen & Chao-Cheng Mai, 2015. "Factors Influencing China's Exports with a Spatial Econometric Model," The International Trade Journal, Taylor & Francis Journals, vol. 29(3), pages 191-211, August.
    11. Jiayi Huang & Miguel D. Ramirez, 2016. "Do Exports lead Economic Output in Five Asian Countries? A Cointegration and Granger Causality Analysis," Business and Economic Research, Macrothink Institute, vol. 6(2), pages 30-50, December.
    12. Adeel Saleem & Maqbool H. Sial & Ahmed Raza Cheema, 2023. "Does an asymmetric nexus exist between exports and economic growth in Pakistan? Recent evidence from a nonlinear ARDL approach," Economic Change and Restructuring, Springer, vol. 56(1), pages 297-326, February.
    13. Jeffrey H. Bergstrand & Scott L. Baier, 2010. "An Evaluation of Swiss Free Trade Agreements Using Matching Econometrics," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 65(3), pages 239-250, September.
    14. Sayef Bakari, 2017. "The Impact of Vegetables Exports on Economic Growth in Tunisia," Economic Research Guardian, Weissberg Publishing, vol. 7(2), pages 72-87, December.
    15. Eleanor Doyle & Inmaculada Martínez-Zarzoso, 2006. "Relating Productivity and Trade 1980-2000: A Chicken and Egg Analysis," Ibero America Institute for Econ. Research (IAI) Discussion Papers 147, Ibero-America Institute for Economic Research.
    16. Onafowora, Olugbenga A. & Owoye, Oluwole, 1998. "Can Trade Liberalization Stimulate Economic Growth in Africa?," World Development, Elsevier, vol. 26(3), pages 497-506, March.
    17. Christian Dreger & Dierk Herzer, 2013. "A further examination of the export-led growth hypothesis," Empirical Economics, Springer, vol. 45(1), pages 39-60, August.
    18. Clougherty, Joseph A. & Grajek, Michał, 2014. "International standards and international trade: Empirical evidence from ISO 9000 diffusion," International Journal of Industrial Organization, Elsevier, vol. 36(C), pages 70-82.
    19. repec:hal:wpspec:info:hdl:2441/c8dmi8nm4pdjkuc9g708pipbp is not listed on IDEAS
    20. Fadzil, Atikah & Masih, Mansur, 2017. "Does export lead growth? evidence from Japan," MPRA Paper 109290, University Library of Munich, Germany.
    21. Ramesh C Paudel, 2014. "Export performance in developing countries: A comparative perspective," Departmental Working Papers 2014-26, The Australian National University, Arndt-Corden Department of Economics.

    More about this item

    Keywords

    Malaysia; Association of Southeast Asian Nations; Association of Southeast Asian Nations Economic Community; Gravity; Exports;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2016-02-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.