Summary

Research Report: This report akes a forward-looking view of ASEAN in the context of a rapidly changing world economy.

Description

Author: Peter Lloyd and Penny Smith

This report takes a forward-looking view of ASEAN in the context of a rapidly changing world economy. It is concerned solely with ASEAN as an agreement affecting economic relations among the member economies, that is, with the ASEAN Economic Community. It focuses on issues of economic integration. Economic integration is equated to a single market which in turn is equated to the Law of One Price holding in all markets. The report explores what a commitment to the goal of a single market or complete economic integration implies. It requires the elimination of both border and beyond-the-border measures that discriminate against foreign goods or persons and sometimes too the harmonisation across borders of standards, laws and regulations that inhibit trade. The report also considers additional issues that have emerged in regional trading agreements concerning border-related transactions costs, fiscal union and monetary union. Forecasts are made regarding growth rates in the ASEAN economies, changes in the global trade environment and emerging risks. The policy implications for the ASEAN Economic Community of the goal of a single market are considered. Recommendations are made for the Vientiane Action Programme.

Global Economic Challenges to ASEAN Integration and Competitiveness: A Prospective Look [PDF 430KB]

Available: Electronic version only

This report was commissioned by AusAID. The findings, interpretations and conclusions expressed in the report are those of the authors and do not necessarily reflect the views of AusAID or the Australian Government.

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