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ASEAN and the Theory of Regional Economic Integration: A Survey
Michael G. Plummer
ASEAN Economic Bulletin
Vol. 14, No. 2, 30 YEARS OF ASEAN: Economic Co-operation (NOVEMBER 1997), pp. 202-214
Published by: ISEAS - Yusof Ishak Institute
Stable URL: http://www.jstor.org/stable/25773484
Page Count: 13
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The theoretical literature concerning the economic effects of regional integration has made considerable progress since the seminal work by Viner (1950). However, the majority of theoretical and empirical research in this area continues to focus on the static effects of Preferential Trade groupings (PTGs). Designed as a selected survey, this article suggests that, for developing countries like ASEAN, the more relevant areas pertain to the dynamic effects of regional integration, as well as the implications of PTGs in a dynamic-policy-reform context. It is argued that ASEAN will continue to benefit from AFTA and further "deepening" measures through the effects on reinforcing macroeconomic stability, encouraging investment flows, fostering technology transfer, reducing intra-regional transactions costs to doing business, and supporting policy reform in the region. ASEAN's new member states will likewise be able to benefit from the regional integration programme in Southeast Asia. Finally, we predict that ASEAN regional integration will help ASEAN countries overcome periodic crises by, among other things, locking in regional economic reform and providing information sharing regarding crisis management.
ASEAN Economic Bulletin © 1997 ISEAS - Yusof Ishak Institute