An ASEAN-EU FTA, Regional Production Sharing, and Regional Cohesion. Focus On Cambodia, Laos and Myanmar

Chen, Lurong, Cuyvers, Ludo, De Lombaerde, Philippe and Mukti, Wahyu, (2011). An ASEAN-EU FTA, Regional Production Sharing, and Regional Cohesion. Focus On Cambodia, Laos and Myanmar. South African Journal of Economics, 79(4), 411-427

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  • Author Chen, Lurong
    Cuyvers, Ludo
    De Lombaerde, Philippe
    Mukti, Wahyu
    Title An ASEAN-EU FTA, Regional Production Sharing, and Regional Cohesion. Focus On Cambodia, Laos and Myanmar
    Appearing in South African Journal of Economics
    Volume 79
    Issue No. 4
    Publication Date 2011
    Place of Publication Hoboken
    Publisher Wiley-Blackwell
    Start page 411
    End page 427
    Language EN
    Abstract

    This article focuses on the potential effects of an Association of South East Asian Nations (ASEAN)European Union (EU) Free Trade Agreement (FTA) for Cambodia, Laos and Myanmar (CLM), the least developed economies of ASEAN. The authors explore how the particular structure of the ASEAN production sharing network might shed light on the transmission of effects. Gravity models for intraregional trade are estimated for that purpose. Whereas the existing computable general equilibrium (CGE) analyses consider CLM as one rest category, a countrylevel analysis for the CLM countries is presented. It is shown that it is not straightforward that CLM would win from an ASEANEU FTA. At best, marginal absolute positive effects might be expected for the CLM economies. In relative terms, an FTA is not likely to contribute to more economic (and political?) cohesion in the region. It is therefore argued that it makes sense to (re) connect CLM to the negotiation process.

    Copyright Holder The Authors, Journal compilation, Economic Society of South Africa
    Copyright Year 2011
    Copyright type All Rights Reserved
    DOI 10.1111/j.1813-6982.2011.01312.x
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    Created: Fri, 15 Feb 2019, 13:43:25 JST