ASEAN economic integration compared: what do the numbers tell us?

South Africa - 21 November 2017

In the comparative literature on regional (economic) integration processes, the ASEAN experience is often contrasted with the European (EU) integration process. More than any other integration process in the world, the ASEAN case is singled out as a counter-model to the EU. The ASEAN model is associated with features such as: low levels of institutionalisation, pragmatism, bottom-up or de facto regionalisation, regional production platforms, and so on. The positive features of this ‘model’ are often emphasised; however, in recent years there have also been calls (including from the ADB) for deepening the institutionalisation of ASEAN.

The purpose of this paper is twofold: (1) To present a long-term meta-analysis of available indicators in order to compare more accurately the ASEAN experience with other integration experiences worldwide, and to complement (and test) the mostly qualitative approaches in the comparative literature. This enables the identification of convergences and divergences between ASEAN and other integration processes; (2) By comparing ASEAN with benchmark cases, new light is shed on the potential for further deepening the economic integration process in South-East Asia. The latter comparison is complemented with gravity-type model estimations to assess the potential for further developing intra-ASEAN trade. It is revealed that ASEAN’s export space is expanding faster than the world average and that there is still space for ASEAN countries to further develop their intra-regional trade. ASEAN can further improve the region’s competitiveness by reducing non-tariff barriers and technical barriers, focusing on trade facilitation, strengthening regional value chains, facilitating factor mobility and enhancing regional cooperation.

Available from: http://www.worldscientific.com/doi/abs/10.1142/S0217590818400039

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