Integration Options of ASEAN Transition Economies
This paper looks into the relative merits of two approachesâ€”participation in preferential trading agreements (PTAS) and multilateralism, as exemplified by membership in the World Trade Organizationâ€”both of which lead to the path of integration with the world economy. Four ASEAN transition countries with relatively large agricultural sectors are examined. Given the growing empirical evidence that trade openness is associated with higher economic growth and improved standards of living, as well as the upsurge in demand for agricultural products, these transition economies face potential benefits from increased exports. The literature reviewed by the paper suggests that PTAs and the multilateral system complement each other, with the trade agreements forming part of the process in which PTAs create incentives for non-members to eventually join the WTO. PTAs, therefore, serve as the next-best path towards expanding world trade while negotiations for multilateral trade liberalization are still going on. On the other hand, findings also point out that regional trading agreements tend to divert trade toward its members, incur unnecessarily high administrative costs, and create opportunities for unproductive rent-seeking activities. Policy makers are thus enjoined to innovate on their respective preferential trade arrangements, using these to help solve regional spillover problems and promote more trade among members.
Volume (Year): 1 (2004)
Issue (Month): 2 (December)
|Contact details of provider:|| Postal: College 4031, Laguna, Philippines|
Phone: (63-49) 536-2365
Fax: (63-49) 536-7097
Web page: http://www.searca.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sag:seajad:v:1:y:2004:i:2:p:29-44. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Avril DG. Madrid)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.