Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model

Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model

This study investigates whether intra-ASEAN trade represents higher trade with efficient members (trade creating) or with inefficient members (trade diverting). Since ASEAN integration efforts are geared toward “open regionalism”, factors affecting both inter-industry and intra-industry trade at the...

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Main Authors: Mohd Amin, Ruzita, Hamid, Zarinah, Md Saad, Norma
Format: Article
Language:English
Published: Centre for Promoting Ideas, USA 2011
Subjects:
HF3000 By region or country
Online Access:http://irep.iium.edu.my/3262/
http://irep.iium.edu.my/3262/
http://irep.iium.edu.my/3262/1/2011-Does_Trade_among_ASEAN_promote_efficience-IJHSS%5B1%5D.pdf
id iium-3262
recordtype eprints
spelling iium-32622011-10-24T06:33:34Z http://irep.iium.edu.my/3262/ Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model Mohd Amin, Ruzita Hamid, Zarinah Md Saad, Norma HF3000 By region or country This study investigates whether intra-ASEAN trade represents higher trade with efficient members (trade creating) or with inefficient members (trade diverting). Since ASEAN integration efforts are geared toward “open regionalism”, factors affecting both inter-industry and intra-industry trade at the disaggregated level are also identified. Using the extended gravity model, intra-ASEAN trade with efficient members is found for total exports, mainly contributed by five sectors: beverages & tobacco, minerals & fuels, chemicals & materials, machinery & transport equipment, and miscellaneous manufactures. Thus, this study finds that only „good‟, i.e., efficient intra-regional trade is taking place within ASEAN, which is in line with the objective of establishing the ASEAN Economic Community. Income levels, transportation costs as well as level of development are shown to have a significant effect on total trade as well as on most sectors. Based on the findings, the study provides policy recommendations to promote higher trade for ASEAN members. Centre for Promoting Ideas, USA 2011 Article PeerReviewed application/pdf en http://irep.iium.edu.my/3262/1/2011-Does_Trade_among_ASEAN_promote_efficience-IJHSS%5B1%5D.pdf Mohd Amin, Ruzita and Hamid, Zarinah and Md Saad, Norma (2011) Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model. International Journal of Humanities and Social Science, 1 (12). pp. 236-253. ISSN 2221-0989 (O), 2220-8488 (P) http://www.ijhssnet.com/
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HF3000 By region or country
spellingShingle HF3000 By region or country
Mohd Amin, Ruzita
Hamid, Zarinah
Md Saad, Norma
Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model
description This study investigates whether intra-ASEAN trade represents higher trade with efficient members (trade creating) or with inefficient members (trade diverting). Since ASEAN integration efforts are geared toward “open regionalism”, factors affecting both inter-industry and intra-industry trade at the disaggregated level are also identified. Using the extended gravity model, intra-ASEAN trade with efficient members is found for total exports, mainly contributed by five sectors: beverages & tobacco, minerals & fuels, chemicals & materials, machinery & transport equipment, and miscellaneous manufactures. Thus, this study finds that only „good‟, i.e., efficient intra-regional trade is taking place within ASEAN, which is in line with the objective of establishing the ASEAN Economic Community. Income levels, transportation costs as well as level of development are shown to have a significant effect on total trade as well as on most sectors. Based on the findings, the study provides policy recommendations to promote higher trade for ASEAN members.
format Article
author Mohd Amin, Ruzita
Hamid, Zarinah
Md Saad, Norma
author_facet Mohd Amin, Ruzita
Hamid, Zarinah
Md Saad, Norma
author_sort Mohd Amin, Ruzita
title Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model
title_short Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model
title_full Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model
title_fullStr Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model
title_full_unstemmed Does trade among ASEAN members promote efficiency? sectoral evidence from the gravity model
title_sort does trade among asean members promote efficiency? sectoral evidence from the gravity model
publisher Centre for Promoting Ideas, USA
publishDate 2011
url http://irep.iium.edu.my/3262/
http://irep.iium.edu.my/3262/
http://irep.iium.edu.my/3262/1/2011-Does_Trade_among_ASEAN_promote_efficience-IJHSS%5B1%5D.pdf
first_indexed 2023-09-18T20:11:02Z
last_indexed 2023-09-18T20:11:02Z
_version_ 1777407478531620864

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