EU-ASEAN economic relations post Asian financial crisis

• Main Authors: Dee, Annie Erika T., Mariano, Jezzine Anne P., Pe-Aguirre, Kaye Trina S.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: European Union countries > Foreign economic relations > Southeast Asia; Southeast Asia > Foreign economic relations > European Union countries; European Union countries > Commerce > Southeast Asia; Southeast Asia > Commerce > European Union countries; Financial crises > Southeast Asia; Asian Studies; International and Area Studies
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7324
• Institution: De La Salle University

The paper seeks to investigate the impact of the Asian Financial Crisis on EU-ASEA economic relation from 1998-2000. In order to grasp fully this impact, the group specifically tried to look at several factors. The group tried to determine how exposed EU was from the Asian Financial Crisis, and then identified which sector of the EU more exposed banking or the business sector. In particular, the effects of the crisis on this sector were scrutinized. More importantly, the group studied the measures the ASEAN implemented in order to reduce the impactt of the crisis as well as the policies the EU set up to prevent it from becoming more vulnerable from the crisis. After studying them, the researchers analyze the consequences brought about by these measures on ASEAN’s economic relations with the EU, above all their effects on their trade and investment relations. The group had put forward their hypothesis regarding their inquiry, which goes like this, because of the mishandling of liberalization, the Asian financial crisis of 1997-98 occurred, and due to the fact that liberalization of economies and globalization widen the exposure and vulnerability of the regions to each other, it had reduced the trade and investment of the EU in ASEAN countries, but at the same time, increased the dependency of ASEAN on the EU economically from 1998-2000. In order to test this supposition, the researchers used historical institutionalism as their framework in answering the problem. The theory emphasizes that cause of the crisis was mainly the financial liberalization and that this phenomenon was also the main factor that exposed a region like EU to the East Asian financial crisis even though obviously, this is happening in an area geographically far from it.