The pattern of intra-ASEAN trade in the priority goods sectors

• Main Author: Austria, Myrna S.
• Format: text
• Published: Animo Repository 2004
• Subjects: Trade blocs; Free trade—Southeast Asia; International trade; Economics
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/12570
• Institution: De La Salle University

This study examined the pattern of intra-ASEAN trade and the degree of integration of the goods sectors considered by the ASEAN Leaders as priority for acceleration in economic integration. This was accomplished by first examining the factors driving economic integration in the region; and then measuring the degree of integration of the sectors and products using the intra-industry trade index. The sectors include agro-based products, fisheries, healthcare products, rubber-based products, wood-based products, textiles and garments, electronics, information and communication technology (ICT), and automotive.Several forces are driving economic integration in the sectors, these include the international production sharing of multinational companies from developed economies, ASEAN's own initiatives at free trade and investment agreements, and member economies' domestic policies. To a large extent, the domestic policies of the member economies shaped the pattern of intra-ASEAN trade while the sectoral policies determined the model of integration for each sector. The findings show that only ICT, electronics, automotive and healthcare products succeeded in achieving some degree of economic integration, although not in all products of the sectors. On the other hand, economic integration will not be forthcoming in the other sectors unless there is industrial upgrading in garments and textiles, and further industrial processing in agro-based, fisheries, rubber-based and wood-based products. While integration in most of the products of the priority sectors is still weak, there was an improvement in intra-industry trade between 1997 and 2001, indicating increasing integration. The study identified policy measures and strategies for achieving deepening economic integration in the sectors.